Trellor (TRB) has been one of the winners of the recent rally in the cryptocurrency market, climbing from a monthly low of $43 to over $115 in less than two weeks. This impressive rally has sparked increased interest in the cryptocurrency, leading to more momentum for the digital asset. However, not everyone accepts this bullish sentiment, as one crypto analyst has predicted a rapid price decline for the digital asset.
A Krypto analyst from TradingView has cited reasons why they believe the price of Trellor (TRB) will crash in the coming days. The post, which included a TRB chart, showed that the price had fallen below the $60 mark once again.
According to the analyst, the first indicator of the impending crash is the fact that TRB trading volume has declined. They displayed this in the chart, which showed the volume decline amidst the ongoing price rally.
The crypto analyst also believes that the coin is now at an "extremely overbought and overvalued" level. Typically, when a security or coin is overvalued and overbought, it often precedes a price decline as investors look to secure profits. This could be the case in this situation, especially considering that the majority of holders have realized significant gains.
The analyst points out that TRB profitability is incredibly high, with 95% of holders making a profit at the time of the analysis's publication. This is confirmed by data from IntoTheBlock, which showed a slight decline in the number of profitable holders to 93%, with 0 holders experiencing losses. The remaining 7% are reportedly neutral, meaning they purchased their coins at the same prices as the current market price.
This lends credibility to the analyst's expectation of a price decline, especially as those investors realizing profits begin to sell their coins.
When it comes to how far the crash can go, the crypto analyst expects a significant price decline. They believe there is no way for the bulls to sustain the current momentum, which has been going on for days, "without a strong correction."
The analyst anticipates that the price of Trellor (TRB) will drop by at least 50% from the current level. However, the expectations are not only for a crash. They explain that there is a possibility for the price to continue rising, in which case it could reach $135 to $155. However, they still hold on to the expectation of a crash.
In a follow-up comment, the analyst announced that they had decided to start short-selling the TRB coin. Their entry price is $110, with three take-profit targets set at $70, $52, and $41, and a stop-loss at $161.
Although Trellor (TRB) has fallen by about $9 in the past day, it is still significantly up. At the time of writing this article, the price is currently at $111, but its daily trading volume has dropped by over 35% in the same period.
Follow Best Owie on X (formerly Twitter) for market insights, updates, and occasional humorous tweets... Featured image from Shutterstock, chart from TradingView.com.
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