Trellor (TRB) has experienced a remarkable rally in the recent crypto market surge, skyrocketing from a monthly low of $43 to over $115 in less than two weeks. This impressive performance has generated increased interest in the cryptocurrency and further momentum for its digital asset. However, not everyone is convinced of this bullish trend, as a crypto analyst has predicted a rapid decline in the price of Trellor.
In a recent post by a TradingView crypto analyst, they outlined the reasons behind their belief that the price of Trellor (TRB) will crash in the coming days. The post included a chart depicting TRB’s price falling below the $60 mark once again.
The analyst pointed out that one indicator of the impending crash is the decline in TRB’s trading volume. This decrease in volume is occurring despite the ongoing price rally of the coin. Additionally, the analyst believes that Trellor has now reached an “extremely overvalued and overbought” level. Typically, when a coin becomes overvalued and overbought, it often precedes a price crash as investors rush to secure their profits. This scenario is likely to occur in this case, especially considering that the majority of TRB holders are currently in significant profits.
The profitability of TRB is remarkably high, with 95% of holders in profit at the time of the analysis. Data from IntoTheBlock supports this, showing a small drop in the number of profitable holders to 93%, with zero holders in a loss. The remaining 7% are considered neutral, meaning they purchased their coins at the same prices as the current market price. This further supports the analyst’s expectation of a price decline, particularly when these profitable investors start selling their coins.
Regarding the extent of the potential crash, the crypto analyst predicts a significant drop in price. They argue that the current bullish momentum, which has persisted for several days, cannot be sustained without a substantial correction. While there is a possibility that the price may continue to rise, reaching as high as $135 to $155, the analyst maintains their expectation of a crash.
In a follow-up comment, the analyst revealed their decision to start shorting the TRB coin. They entered the market at a price of $110, with three take profit targets set at $70, $52, and $41, and a stop loss placed at $161.
Despite a slight drop of around $9 in the last day, Trellor (TRB) is still significantly up. Currently trading at $111, its daily trading volume has decreased by over 35% in the same time period.
It is important to note that these predictions and analysis are based on the opinions of the crypto analyst and should not be taken as financial advice. The cryptocurrency market is highly volatile and subject to sudden changes. Investors should conduct their own research and exercise caution when making investment decisions.
❗Follow us on Twitter to get all the latest crypto news as soon as they're out! 🚀