Tron (TRX) shows signs of bounce back as DEX trading surges and investor confidence stabilizes.

Tron (TRX) is currently maintaining stable trading at the 0.2900 USD threshold as of the update on Tuesday, after recording a 2% increase on Monday. The layer-1 project of Chinese billionaire Justin Sun is driving on-chain demand with increased trading volume on decentralized exchanges (DEX), while the cautious sentiment of retail investors is gradually easing, contributing to the stabilization of the TRX futures market.

Technically, Tron is showing clear bullish potential, with the ability to challenge moving averages and important resistance levels above.

On-chain demand increases as retail investor sentiment stabilizes

Tron continues to maintain stable on-chain strength over the past week, despite the fluctuations in the broader cryptocurrency market. According to data from DeFiLlama, the trading volume on the DEX exchanges of the Tron network reached 843.5 million USD, a significant increase from 532.53 million USD the previous week. This increase reflects the growing number of users adopting the network, opening up the potential to drive demand for the TRX token.

The trading volume of Tron DEX | Source: DeFiLlamaAt the same time, retail investor demand has decreased and stabilized since the end of August, creating an opportunity for bullish sentiment to return. Data from CoinGlass shows that the open interest (OI) of TRX futures contracts is holding at 264.52 million USD, remaining stable above 250 million USD compared to last week. This figure indicates that trader sentiment is shifting to a neutral state, suggesting that if the overall market stabilizes, demand for TRX may continue to recover.

Open interest of Tron futures contract | Source: CoinGlass## Tron attempts to recover, aiming for the 0.30 USD mark

Tron (TRX) is currently trading below the 200-day exponential moving average (EMA) at 0.3022 USD, while the 50-day EMA continues to trend downwards after crossing below the 100-day EMA, forming a death cross pattern on the daily chart.

The short-term recovery of TRX reflects the rebound from the support line connecting the lows of February 3 and March 17. For the uptrend to continue to expand, TRX needs to break through the 200-day EMA at 0.3022 USD.

Other important resistance levels include the 50-day EMA at 0.3104 USD and the resistance above near 0.3261 USD, formed from the peaks on August 14 and October 6.

TRX/USDT Daily Chart | Source: TradingViewThe momentum indicators on the daily chart also show positive signals. The RSI is at 46, bouncing back from the oversold region and aiming to cross the midline, while the MACD line has crossed above the signal line last Saturday, with gradually increasing green histogram bars, indicating that bullish momentum is recovering.

However, if TRX falls back to last week's low at 0.2764 USD, the rebound momentum will be invalidated, opening up the risk of a deeper correction down to the low on May 31 at 0.2632 USD.

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