The price of TRON’s native cryptocurrency, TRX, took a hit recently, dropping by 2.7% in just 24 hours. While that might not sound like a huge loss in the volatile world of crypto, it has raised concerns about whether this is a short-term pullback or the beginning of a deeper downturn.

Over the past three weeks, TRX had been performing well, gaining nearly 10% in value. But the latest dip came after a sudden increase in selling pressure from large holders, often called whales. According to blockchain data, more than 8.2 million TRX—worth around $2 million—was sold off by these large accounts, triggering the price drop.

This sell-off appears to be a calculated move by these investors. After making significant gains during TRX’s recent rally, they likely decided it was time to take profits. This is a common strategy in crypto trading—buy low, sell high, and reduce exposure once prices approach key resistance zones.

Technical analysis shows that TRX had been trading near the upper range of the Bollinger Bands, a widely used indicator that often signals when an asset is overbought or oversold. When prices hit the upper band, it typically points to a possible pullback. This seems to be exactly what happened.

Analysts are now watching two main price levels. The first is around $0.2398, which could act as a support area where prices might stabilize and bounce. If that level fails to hold, the next support sits around $0.2246, which would represent a deeper correction.

Another technical tool, the Average Directional Index (ADX), is being used to measure the strength of the current trend. Right now, the ADX shows that while the price is falling, the trend isn’t particularly strong. This could suggest that the decline may not last long, and TRX could recover soon.

Despite this drop, overall sentiment in the TRX market remains fairly positive. More than 84% of TRX holders are still in profit, meaning they bought the token at a lower price than it is now. This often leads to less panic selling, since most investors feel comfortable holding through temporary dips.

Adding to the optimism is the fact that the TRON blockchain continues to perform well. In the same 24-hour period when TRX’s price fell, the TRON network recorded over $2.2 million in transaction fees—more than any other blockchain. This high level of activity indicates strong user engagement and steady demand for the network’s services.

TRON has positioned itself as a key player in the blockchain space, especially in regions like Southeast Asia. It’s widely used for stablecoin transfers and hosts several decentralized applications (dApps), which keeps the network busy even during market slowdowns.

Looking ahead, the short-term outlook for TRX depends on how it reacts to the current support levels. If it manages to hold steady and investor confidence remains high, the price could start climbing again. On the other hand, if whales continue to sell and market conditions weaken, TRX might fall further.

Still, with strong blockchain activity and most investors staying profitable, many believe this recent dip is a normal correction rather than the start of a downtrend. Long-term holders may see this as a buying opportunity, especially if the market starts showing signs of recovery.

For now, TRX investors are watching closely—but there’s no reason to panic just yet.