Tellor (TRB) has surged to the top of cryptocurrency gainers this week, reaching a 2023 peak of $35. On-chain analysis reveals the forces behind this rally and its potential longevity.
Tellor (TRB) is a decentralized oracle protocol that bridges off-chain data with on-chain smart contracts. This month, TRB’s price soared 134%, hitting $35 on September 14.
Why Is Tellor (TRB) Price Rallying?
The price surge accelerated after SWIFT Network announced successful trials using Chainlink’s oracle infrastructure for tokenized TradFi and real-world asset integration. This development has spotlighted oracle protocols like Tellor.
Short-Term Traders Fuel the Rally
On-chain data indicates speculative trading is driving TRB’s rally:
- Short-term trader balances grew by 2,096% in a month (from 91,130 TRB to 1.9 million TRB).
- Long-term holders reduced their positions by 1.64 million tokens during the same period.
- Ownership shift: Short-term traders now control 75% of TRB supply, up from 3.65% in August.
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This suggests the rally is speculative, lacking fundamental growth in network demand. Without long-term investor support, the momentum may falter.
Exchange Reserves Decline Signals Holders’ Confidence
TRB’s rally intensified as investors withdrew tokens from exchanges:
- Exchange reserves dropped from 2.3 million to 1.5 million TRB since August 25.
- Reduced exchange supply implies holders may delay selling, potentially prolonging the rally.
TRB Price Prediction: Key Levels to Watch
Support and Resistance Zones
- Critical support: $20 (553 addresses hold 1.16 million TRB at this level).
- Initial resistance: $42 (974 addresses hold 78,500 TRB here).
- Upside potential: A break above $42 could target $50 if network traction improves.
Risks Ahead
- Profit-taking by short-term traders may trigger a correction toward $14.
- Sustained growth requires increased network activity or institutional backing.
FAQs
What is Tellor (TRB)?
Tellor is a decentralized oracle network that supplies off-chain data to smart contracts, similar to Chainlink but with a different consensus mechanism.
Why did TRB price surge recently?
The rally aligns with SWIFT’s adoption of oracle tech for tokenization, boosting interest in oracle projects like Tellor. Short-term trading activity further amplified gains.
Can the rally continue?
It depends on whether long-term investors replace speculative traders and whether Tellor demonstrates real-world adoption beyond current hype.
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Conclusion
While Tellor’s 135% rally highlights oracle protocols’ growing relevance, its sustainability hinges on broader market trends and organic network growth. Traders should monitor exchange reserves and key support levels ($20) for directional cues.