- TRX has entered a rare underperformance zone, a level where rebounds have historically followed as BTC dominance starts to ease.
- The Opportunity Score uses price ratio, beta, returns, and volatility, smoothed over 100 days to assess TRX’s relative strength.
- Cyclical trends show TRX often gains momentum after hitting low scores, creating a potential opportunity for proactive market participants.
TRX Opportunity Score has entered its Underperformance zone against Bitcoin, a condition that may indicate upcoming accumulation interest among investors.
Metric Shows TRX Lagging Behind Bitcoin
A recent tweet from Joao Wedson highlights that the TRX Opportunity Score, which compares TRX’s performance against Bitcoin, currently lies in the Underperformance range. This shift suggests that TRX’s recent strong run has paused, while Bitcoin continues to lead in relative strength.
The Opportunity Score is calculated using the TRX/BTC ratio, daily returns, volatility, beta, and correlation, all weighted and normalized. It is smoothed using a 100-day moving average and scaled from 0 to 100. A low score in this model suggests that TRX has been trailing behind Bitcoin in key performance metrics.
Accumulation Zone May Be Forming
Historically, the Underperformance zone has often served as a signal for potential TRX rebounds. When the score drops into this territory, it has sometimes been followed by phases of renewed interest and upward price momentum for TRX.
Joao Wedson notes that Bitcoin’s current dominance may not persist indefinitely. Crypto markets often move in cycles, and this downturn in TRX’s comparative performance could open up a window for strategic accumulation. The market may begin to shift if traders anticipate the start of a new TRX phase.
TRX’s Historical Behavior Offers Clues
Past data patterns indicate that when the TRX Opportunity Score reaches low levels, it has sometimes been followed by a resurgence in TRX’s relative strength. Traders often monitor such zones to plan potential re-entries into the asset.
While TRX is currently underperforming Bitcoin, its cyclical behavior within the broader market may signal a nearing recovery point. The metric continues to serve as a tool for analyzing relative strength and potential upside scenarios in the TRX/BTC market structure.
