Can Tellor (TRB) Bulls Sustain Momentum to Reach the $50 Mark Amidst Real World Asset Interest?

Can Tellor (TRB) Bulls Sustain Momentum to Reach the $50 Mark Amidst Real World Asset Interest?

Crypto News – On Wednesday, September 20, the price of Tellor (TRB) rebounded and reclaimed the $40 level after a weekend retracement. Insights from both on-chain and derivatives market indicators suggest the possibility of TRB price reaching the $50 mark.

Tellor (TRB) operates as a decentralized oracle protocol, facilitating the integration of off-chain data into on-chain smart contracts. Investors have recently shown increased interest in the Real World Assets (RWA) sector, leading to significant gains for TRB, Chainlink (LINK), and other major players in the decentralized oracle projects.

Can TRB bulls ride the wave of interest in Real World Assets to reclaim the $50 mark?

Speculative traders for TRB are currently reducing their activity. Last week, Beincrypto’s analysis raised concerns that short-term traders’ speculative activity was the primary driver of the ongoing TRB rally. Data from the derivatives market indicates a scaling down of speculative activity in TRB futures.

Since dropping to $26 on September 18, TRB’s price has rebounded by 53%, reclaiming $40 on September 20. However, in the derivatives markets, futures traders have only increased capital inflows by 21% during this period.

Indicatively, TRB’s Open Interest was at $154 million when the price retraced on September 18. By September 20, it had increased to $184 million.

While a 21% increase in Open Interest is significant, it is notably lower than the 53% increase in Tellor’s price. This raises concerns that the current TRB rally might be driven by short sellers rushing to cover their positions due to the rapid price increase.

Without attracting new participants and substantial additional capital, there’s a risk of the price rally being short-lived, potentially leading to a sharp retracement in the coming days.

The Tellor network is struggling to attract new participants amidst market volatility. On-chain data compiled by Santiment shows that only 62 new TRB wallet addresses were created on September 20, representing a 66% decline from the recent peak on September 19.

In summary, sustaining the current price levels for TRB requires an increase in investor participation and capital inflow. Without this, there’s a risk of an overvaluation bubble burst, potentially causing a significant retracement for TRB.