The recent crypto market rally has brought about substantial gains for Trellor (TRB), with the digital asset witnessing a surge from a low of $43 to over $115 in just a fortnight. This impressive rally has sparked a surge in interest in TRB, leading to increased momentum for the cryptocurrency. However, not everyone shares this bullish sentiment, as a prominent crypto analyst predicts a rapid decline in the price of TRB in the coming days. In this article, we will delve into the reasons behind this prediction and explore the potential consequences for the cryptocurrency.
One of the key indicators of the forthcoming crash, according to the TradingView crypto analyst, is the decline in the trading volume of TRB. The analyst provides a chart depicting this decline, which is occurring simultaneously with the ongoing price rally. As trading volume drops amid the rally, it raises concerns and hints at a potential reversal in price. The dwindling trading volume suggests a lack of confidence among investors, which could trigger a wave of profit-securing sell-offs.
The analyst argues that TRB has now entered the realm of being “extremely overvalued and overbought.” When a cryptocurrency reaches such a state, it often precedes a crash in price as investors rush to capitalize on their profits. The majority of TRB holders are currently in profit, with a staggering 95% of them enjoying lucrative returns. IntoTheBlock data supports this claim, revealing that 93% of holders are profitable, with none in a loss. The remaining 7% are neutral, meaning they purchased their coins at the same prices as the current market value. This alignment of profitability among holders lends credence to the analyst’s expectation of a price decline, particularly when these profitable investors decide to sell their holdings.
The crypto analyst envisions a significant crash in the price of TRB. While they acknowledge the possibility of the price continuing to rise, reaching levels as high as $135 to $155, they maintain their expectation of an inevitable crash. The analyst believes that the current momentum cannot be sustained without a substantial correction. They anticipate a crash of at least 50% from the current level.
In a follow-up comment, the analyst reveals their decision to short TRB. Their entry price is set at $110, with three take profit targets at $70, $52, and $41. They have also placed a stop loss at $161. By shorting TRB, the analyst is betting on the price decline, aiming to profit from the projected crash.
Despite a recent decline of approximately $9, TRB remains significantly higher than its previous value. At the time of writing, it is priced at $111. However, the daily trading volume has witnessed a sharp decline of over 35% within the same period. This divergence between the price and trading volume could be an alarming sign for TRB holders.
While Trellor (TRB) has experienced an impressive price rally, not all experts share an optimistic outlook for the cryptocurrency. A well-known crypto analyst predicts a price crash based on a decline in trading volume and the overvaluation of TRB. While the price may continue to rise in the short term, the analyst expects a substantial correction in the near future. Investors should carefully consider these analyses and make informed decisions regarding their TRB holdings.
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