Tron (TRX) continues to bounce back, despite a decline in revenue as retail investor demand surges.

Tron (TRX) continues to maintain its upward momentum, recording an additional nearly 1% on Friday, after breaking out by 2.36% in the previous trading session thanks to high retail investor demand. Signals from technical analysis and derivative data lean towards an optimistic scenario, as investors expect the bounce back of TRX to continue.

Retail investor demand for Tron surges, despite declining revenue

The retail demand for Tron (TRX) is surging strongly, leading to an increase in open contracts (OI) and a wave of short position liquidations. According to data from CoinGlass, the OI of TRX has risen nearly 2% in the last 24 hours, reaching 476.95 million USD, reflecting strong capital inflow and increasing trading demand.

Notably, during the same period, the number of Short positions liquidated reached 245,750 USD, significantly higher than the 35,310 USD from the Long side. This indicates that the bears are under considerable pressure, while pushing the long/short ratio to 1.0255 – a threshold that indicates Long positions are in the majority.

TRX Derivative Products | Source: CoinglassHowever, on-chain data raises alarm bells. This week, the revenue of the Tron network has plummeted sharply, with statistics from TronScan showing that the protocol's revenue on Thursday only reached 7.99 million USD, more than half down from over 15 million USD at the end of August.

Tron network revenue | Source: TronScan## Tron aims for a V-shaped breakout model

On the daily frame, Tron (TRX) is showing strong recovery signals with a V-shaped pattern, after bouncing back from the (EMA) 100-day exponential moving average – right after breaking out of the ascending channel at the end of August. At the time of writing, TRX is trading around 0.3400 USD in Friday's session, approaching the resistance level of 0.3510 USD. This is not only the peak from July 29 but also serves as the (neckline) of the V-shaped recovery pattern.

If the closing price decisively surpasses this level, the upward momentum could extend to the area of 0.3700 USD – corresponding to the peak on August 14.

Daily TRX/USDT Chart | Source: TradingViewThe current technical signals are also reinforcing the bullish scenario. The MACD indicator has crossed above the signal line, creating a new green histogram above the 0 threshold, indicating that bullish momentum is returning. At the same time, the Relative Strength Index (RSI) has risen to 57 and continues to head towards the overbought zone, reflecting increasingly strong buying pressure.

On the contrary, if TRX is rejected at the level of 0.3510 USD, the price is likely to return to test the 50-day EMA line at 0.3341 USD.

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