Tron (TRX) shocked the crypto world with a massive 100% surge, reaching $0.44. This rally coincides with XRP’s slowing momentum, sparking speculation that TRX is mimicking XRP’s leverage-driven price pump. So, what lies ahead?

Why Did TRX Surge?

Tron’s price jump followed Donald Trump’s election victory, which ignited bullish sentiment across the crypto market. Tron gained additional attention after its founder, Justin Sun, emerged as a major backer of Trump’s crypto venture, World Liberty Financial (WLF).

Despite this, TRX’s open interest in futures trading tripled to $436.5 million, signaling a surge in leveraged trades. While this drove the price higher, it also raised concerns about market instability.

Will TRX Face a Correction?

TRX’s Relative Strength Index (RSI) reached an overbought level of 92.75, suggesting the token is overvalued. Currently consolidating between $0.37 and $0.45, TRX risks dropping to $0.32 or even $0.28 if momentum fades, aligning with historical patterns of correction after leverage-fueled rallies.

While TRX’s rally is impressive, its reliance on leverage makes it vulnerable to sharp corrections. Investors should watch key support levels and market indicators closely.