Tron (TRX) strengthens its upward momentum as OI and network activity surge.

Tron (TRX) recorded an increase of nearly 1% at the time of writing this article on Tuesday, continuing to reinforce the upward trend that has lasted since mid-March. This growth momentum is driven by the ever-expanding ecosystem along with the increasing level of acceptance. In the derivatives market, data shows that open contracts (OI) for TRX are skyrocketing — a clear signal indicating that traders' optimism is rising, with expectations that the upward trend will continue in the near future.

Increased interest in Tron drives OI and network activity

According to data from TronScan, the Total Value Locked (TVL) on the TRX network has recorded an increase of over 1.41% in just the past 24 hours, reaching a milestone of 27.14 billion USD. This impressive upward momentum reflects a growing acceptance from users, as the amount of deposits flowing into the TRON ecosystem continues to increase significantly.

Tron network data | Source: TronScanAdditional signals indicate that the network is increasingly attractive, with the number of accounts on TRON now reaching a record high of 323 million. The total value of money transfer transactions has also exceeded 20.280 trillion USD. Just in the past week, the average trading volume using stablecoins reached about 160 billion USD, indicating a strong increase in interaction and network activity.

Tron's open contract | Source: Coinglass## Tron's recovery momentum faces risks as momentum indicators send mixed signals

Tron (TRX) recorded an increase of nearly 2% on Sunday, marking the beginning of the current V-shaped recovery, reinforced by the "morning star" candlestick pattern appearing at last week's bottom of $0.3187. As of the time of writing, TRX continues to maintain its upward momentum with an increase of over 1% on Tuesday, following a rise of 1.62% on Monday.

On the upward trend, if TRX breaks through the resistance level of $0.3385, this coin is likely to test the peak from last week at $0.3510.

Daily chart TRX/USDT | Source: TradingViewHowever, investors should be cautious of the potential correction as the relative strength index (RSI) is diverging from the upward trend of TRX and has fallen out of the overbought zone. This is a bearish divergence signal - often indicating a weakening trend and the risk of a reversal.

In addition, the MACD indicator is currently moving sideways and is closely following the signal line, reflecting a lack of decisiveness in the trend and an increase in volatility in the market.

In a negative scenario, if the upward momentum cannot be maintained due to the impact of RSI divergence, TRX may reverse and drop back to the support zone of $0.3187 – wiping out all the gains achieved in the last two sessions.

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