Bull vs Bear battle TRX - The 0.37 dollar level could determine the trend

The Mayer Multiple index of Tron (TRX) is currently at 1.2x, an important indicator as this level often reflects sustainable support in the broader market context. History shows that maintaining above 1.0x not only helps to reduce bearish risk but also guides the medium term growth of the asset.

The fact that TRX maintains this level while protecting the range of 0.317 – 0.32 dollars further emphasizes its role as a "safe network" for investors. Therefore, many traders view this convergence as a protective cushion against deeper corrections.

However, the market is still watching whether this platform has enough strength to trigger a price increase, especially when important resistance levels are around $0.344 and $0.37.

Will the effort for a breakout of TRX create upward momentum?

The chart shows that TRX is strongly recovering from an important support zone and breaking out of the bearish channel, indicating that the bears are gradually weakening while the bulls temporarily regain control.

Key resistance levels are around $0.344 and $0.37, coinciding with previous rejection points. Maintaining upward momentum in this channel could open up new bullish opportunities, but if it fails to break through the barrier within the price range, selling pressure may return strongly.

Currently, the breakout process is still in the early stages, causing traders to consider whether the bullish sentiment is strong enough to overcome the weak psychology in the derivatives market.

Source: TradingView## Why are derivatives traders withdrawing?

Data from CoinGlass shows that the trading volume of TRX derivatives has fallen sharply, decreasing by 58.74% to $433.11 million, while the open interest (open contracts) also fell by 9.04% to $507.21 million, reflecting a decline in market participation.

These numbers indicate that speculative demand is cooling down, possibly due to traders reducing leverage in the context of an unclear uptrend. The derivatives market is therefore sending cautious signals instead of taking overly strong positions.

However, this decline may also create a "reset" opportunity for the market to develop more healthily, as excessively high leverage often causes strong volatility. The key question remains whether the buyers will return if TRX can maintain a breakout from the channel.

Meanwhile, the funding rate has recently turned negative, with the weighted rate according to OI dropping to -0.0075%, indicating that Short positions are dominant and traders have to pay fees to maintain them. Thus, the bearish trend is clearly evident in the short term in the derivatives market.

However, historically, negative funding often appears before recovery phases, when Short positions become overcrowded. The current challenge is whether TRX can take advantage of this imbalance to drive momentum.

As a result, the funding signal creates a complex market picture, warning of risks while also opening up opportunities, depending on the confidence and determination of the buying side.

Source: CoinGlass## Will Tron’s support hold for a long time?

Ultimately, the combination of Mayer Multiple support and a breakout from the channel provides Tron with a solid technical foundation. However, the decline in derivatives activity along with negative funding indicates that market sentiment remains cautious.

If TRX holds steady in the range of 0.317 – 0.32 dollars and maintains momentum above the resistance levels, it could definitely retest the 0.37 dollar mark.

Therefore, the important question remains whether the bullish sentiment is strong enough to overcome the advantage of the short-sellers and lead Tron towards a sustainable recovery.

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