Tron Inc. (NASDAQ: TRON) has increased its cryptocurrency reserves by purchasing 172,725 TRX coins at an average price of $0.2895 as of Friday, March 13.
The move increases the company’s reserves to over 686.3 million TRX coins. The move is part of the company’s long-term plan to strengthen its balance sheet with digital assets related to the TRON blockchain system.
The company has presented a strategy for gradually increasing its Tron Digital Asset Treasury (DAT) holdings in order to improve long-term shareholder value and align its corporate strategy with the shift towards blockchain technology adoption.
In doing so, the company seeks to leverage the upside potential of the price while being perceived as a publicly traded company that is built on a treasury model based on crypto assets.
Also Read: Tron (TRX) Signals Neutral-to-Bullish Outlook Following Strategic Investment
TRX Technical Indicators Suggest a Consolidation Phase
Despite this institutional investment, the TRX price has formed a tight consolidatory pattern on the daily chart as the volatility diminishes.
According to TradingView, the price is stuck around the $0.2893 mark, sandwiched between the 100-day exponential moving average and the 200-day exponential moving average. This is a classic indication of a balanced market awaiting a catalyst to break the current stalemate.
Source: TradingView
The Bollinger Bands are also contracting, which is an indication that a volatility squeeze is imminent. The resistance is located near the top band at $0.2917, while the lower band is located at $0.2792.
This is an instant support point for the asset. A strong close beyond these boundaries is expected to dictate the direction of the next trend.
Momentum Indicators Point to Gradually Increasing Power
The Relative Strength Index (RSI) is at 55.38. This indicates a neutral to slightly bullish momentum.
Quietly hovering just above the signal line of 51.40 and the 50-center line, the RSI suggests buying momentum is building. There is still a lot of room to go before the token goes into the overbought region of 70.
Source: TradingView
The MACD has triggered a bullish crossover as the line rises above the signal line. The histogram bars have also moved into the green zone, indicating increasing positive momentum.
Both lines are above zero, indicating an ongoing upward trend. This is an indication of a stable accumulation process currently underway for TRX.
Also Read: TRX Price Eyes Daily Close Above $0.30 for Trend Confirmation
