The recent crypto market rally has seen Trellor (TRB) emerge as one of the winners, skyrocketing from a monthly low of $43 to over $115 in less than two weeks. This impressive surge has undoubtedly attracted heightened interest in the cryptocurrency, with more traders and investors jumping on board. However, amidst all the excitement, there are skeptics who believe that a rapid decline in price for Trellor (TRB) is looming on the horizon.
One crypto analyst, using data from TradingView, has identified key indicators that suggest a potential crash in the price of Trellor (TRB). The first red flag is the decline in trading volume, which is occurring simultaneously with the ongoing price rally. The analyst emphasizes this point by presenting a chart showcasing the dwindling trading volume while the coin’s price continues to surge.
According to the analyst, such a scenario often precedes a crash, particularly when the coin is considered to be “extremely overvalued and overbought.” This is precisely the situation with Trellor (TRB) at the moment. Many investors who have ridden the wave of its astonishing rally are eager to secure their profits, potentially triggering a downward spiral.
Data from IntoTheBlock supports the analyst’s predictions of a price decline. It reveals that a significant percentage of TRB holders, 95% at the time of analysis, are currently in profit. Although there has been a slight drop in profitable holders to 93%, there are still zero holders at a loss. Only 7% of holders are at a neutral position, having purchased their coins at the same prices as the current market price.
These findings lend credence to the analyst’s expectation of a price drop. As investors who are currently in profit begin to sell their coins to secure their gains, it is highly likely that the market will experience a decline in TRB price.
The crypto analyst takes their analysis a step further by predicting an extraordinary price crash for Trellor (TRB). They assert that the current momentum, which has continued for several days, is unsustainable without a significant correction. The analyst believes that the price could plummet by at least 50% from its current level.
However, it is worth noting that there is a possibility for the price to continue its upward trajectory, potentially reaching as high as $135 to $155. Despite acknowledging this optimistic scenario, the analyst maintains their expectation of a crash.
To capitalize on their analysis, the analyst has made the decision to start shorting the TRB coin. They disclose their entry price as $110, with three take-profit targets set at $70, $52, and $41. Additionally, a stop loss has been implemented at $161 to limit potential losses.
Despite the recent dip of around $9, Trellor (TRB) is still showing a significant overall increase. It is currently valued at $111; however, the daily trading volume has decreased by over 35% within the same timeframe.
While many have been rejoicing over the rally of Trellor (TRB), there are valid concerns that a rapid price decline may be imminent. The decline in trading volume and the high profitability of TRB holders suggest that a crash is on the horizon. The analyst’s predictions of a significant price drop serve as a warning to investors and traders, urging them to exercise caution in their decision-making.