TRON’s TRX Token: Potential Bullish Reversal Amid Institutional Accumulation

Altcoins, including TRON’s TRX token, are demonstrating signs of recovery, albeit modestly. Over the past week, TRX observed an uptick of 2%, but its performance over the last two weeks has been notably more positive. As the TRX price trend begins to show upward movement, albeit with lackluster momentum, the critical question arises: can institutional demand and stablecoin liquidity drive a significant price reversal for TRON?

Revisiting Altcoin Season Lows

Analyzing TRON’s daily charts reveals a stark reality: the altcoin has lost over 90% of the market capitalization it amassed during the previous altcoin season. Following a rally from $0.26 to $0.37 between late June and mid-August 2025, the price has now settled into a range reminiscent of past lows. Currently, TRON appears to be forming a double bottom pattern, which is often considered a bullish signal in technical analysis. This pattern coincides with the 0.9 Fibonacci Retracement level, with a pivotal neckline at approximately $0.32. While the MACD indicates a weak but growing momentum, with its histogram reading at 0.0009, there are signs of buyer interest beginning to emerge in the market.

Growing Active Addresses and Short-Term Optimism

The number of active addresses on TRON has surged from 2.783 million at the beginning of 2026 to 4.184 million at present. This uptick in user engagement contributes positively to the narrative of a potential bullish reversal for TRX. However, significant price recovery hinges on breaking through the resistance level around $0.32. The short-term analysis paints a cautiously optimistic picture, supported by a healthy upward trend on TRON’s 4-hour chart. Here, the formation of higher lows and higher highs demonstrates respect for an ascending trendline, complemented by a rise in On Balance Volume from 18.34 billion to 19 billion within the month.

Buyer Strength and Market Concerns

Despite the constructive short-term trends for TRX, concerns linger regarding the strength of buyers. The Bull Bear Power (BBP) indicator remains in the red zone, signaling that while sellers are diminishing, buyer strength is not fully evident. If the current trendline were to break down, it might stall any expectations of a rebound. Furthermore, the broader market sentiment hasn’t fully incorporated recent institutional buy orders, suggesting potential volatility up ahead.

Institutional Interest in TRX

Historical data suggests that institutions typically perform better than retail investors when timing market bottoms and tops. This dynamic is evident in Tron Inc.’s strategic purchases of TRX at an average price of $0.28, which align with a broader trend of increasing net demand for TRX tokens from institutional players. Recently, Tron Inc. announced the acquisition of 177,146 TRX tokens, boosting its total holdings to approximately 682.3 million TRX, valued at around $199 million. This substantial accumulation reinforces the notion that institutional interest in TRX is growing, particularly as stablecoin demand continues to expand.

Impacts of Stablecoin Demand

Another encouraging factor for TRON is its growing stablecoin infrastructure. Recent announcements, such as Polymarket’s support for TRON deposits, further underline the increasing demand for stablecoin transactions on the platform. Notably, USDT’s supply on TRON has seen remarkable growth, with a striking 40% increase over the past year, bringing its total supply to $81 billion. Moreover, the volume of USDT transactions on TRON has surged, hitting around 825 million over the past year. This solid demand indicates that TRX may provide significant value, even as the broader market grapples with uncertainties approaching the $0.28 price point.

Conclusion

As TRON traverses its previous altcoin season lows, the current landscape suggests a cautious yet hopeful outlook for TRX. Institutional accumulation of TRX tokens and the burgeoning demand for stablecoin transactions are pivotal factors driving potential recovery. However, for TRON’s price to decisively reverse the long-term downward trend, the critical resistance point at around $0.32 needs to be breached. While short-term indicators reflect optimism, ongoing vigilance is warranted as the market undergoes shifts influenced by institutional activity and broader sentiment. Ultimately, the question remains whether TRON can transform its present challenges into opportunities for a strong bullish reversal in the near future.