The emerging cryptocurrency took a fatal hit today after Tron [TRX] lost the peg for its stablecoin USDD. Consequently, following the depegging, the altcoin began freefalling as well, and at the time of writing, the cryptocurrency was trading at $0.06, almost 18% below its opening price.
Tron goes boom!
Investors were seen pulling money out of the asset, which further triggered the decline. In less than 24 hours, the volume of outflows observed was almost equal to the outflow that was noted between 9 May and 28 May.
The Chaikin Money Flow (CMF) evinces investors’ failed efforts which led to the outflows which had already begun 10 days ago.
Tron price action | Source: TradingView – AMBCrypto
Regardless, the network had the support of its investors throughout the decline after their presence started strengthening in mid-March.
In less than three months, the active addresses on-chain grew by 200% from 900k investors on average to 2.7 million as of 12 June. Thus, investor presence on the network could bear only two things for the token.
Tron active investors | Source: Coinmetrics – AMBCrypto
One who were buying TRX as an opportunity to book profits once recovery arrived and the second who failed to cash out at the right time and were facing immediate losses at the given moment.
Nevertheless, the TRX token was in an excellent position to accentuate its recovery as it had consistently increasing support from its investors.
On-chain transactions also rose from an average of 2.6 million transactions a day to 5.52 million transactions within the last six months.
Tron on-chain transactions | Source: Coinmetrics – AMBCrypto
Plus, TRX would have been immune to price swings had it not been for the USDD depegging.
The volatility of the asset was at a monthly low after the altcoin registered sustained growth throughout May and June.
In addition to this, the correlation Tron and Bitcoin shared was also at a negative 0.62. A correlation this low would’ve kept TRX safe from any price falls as it would not have followed the king coin’s path.
From green to red in a jiffy
However, now that the cryptocurrency is suffering an almost similar fate as Terra, it might be difficult for TRX to recover anytime soon since till the time of writing and despite Tron injecting $2 billion was off its peg by 1.01%, trading at $0.98.
Tron USD (USDD) depegged | Source: TradingView – AMBCrypto
