The breakdown on the recent $TREE pump 📈
The recent price action in TREE is a classic example of a short-term bounce meeting structural demand, but it’s happening against a backdrop of serious tokenomics headwinds. According to on-chain data, the primary catalyst for the recent upward move isn't a new partnership or product launch, but rather a combination of a technical rebound from oversold conditions and a significant governance proposal. After hitting a bottom around $0.0634, TREE found its footing, and the price is currently attempting to recover toward the $0.078-$0.08 range . The major bullish catalyst on the table is **Treehouse Improvement Proposal (TIP) 4**, which aims to allocate 50% of all protocol fees from its tETH product to open-market buybacks of $TREE . If passed, this would create a consistent, structural demand driver for the token, directly tying protocol revenue to token price and reducing circulating supply over time . However, it's crucial to understand that this pump is occurring in a high-risk environment. A massive token unlock representing a staggering **58.1% of the current market cap** (around $9.78 million) recently occurred or is imminent, flooding the market with new supply from early investors and the team . This supply shock is the primary reason for the long-term downtrend and is a massive overhang that any short-term buying pressure must absorb . So, while the buyback news is sparking optimism and a short-squeeze could be amplifying the move, the path forward is a tug-of-war between this new structural demand and the imminent dilution from the token unlock. Keep a close eye on the DAO vote for TIP-4 and watch the volume on exchange order books to see if this buying pressure can absorb the seller liquidity .
