Altcoin

Is Tron’s latest milestone enough to keep TRX away from bears?

Tron’s latest milestone could be considered as a huge achievement for the network. However, TRX struggled to maintain a positive momentum. Where will the token head next?

Published

1 year ago

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  • Tron sustains a positive growth trajectory fueled by healthy address growth and liquidity.
  • TRX struggles to sustain positive momentum and could be headed for a sizable retracement.

Since the start of 2023, we have kept track of Tron’s growth which has been quite impressive, to say the least. Well, the network seems bent on maintaining that trajectory considering its latest milestone.

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Tron maintained positive and fast-paced growth in the number of addresses. The latest announcement revealed that the number of addresses on the network recently crossed the 185 million mark. This outcome confirmed the strong demand for the Tron network that has prevailed so far this year.

Tron’s address growth should in theory translate to more utility and perhaps even more demand for its native token. But the most evident outcome so far is that the Tron network’s total value locked (TVL) in DeFi also maintained healthy growth. The network recently reported that its TVL just soared above the $15.6 billion mark.

Based on the above findings regarding address and TVL growth, one can expect that the level of activity on the network has been growing. Interestingly, a recent analysis by Coin98 Analytics confirmed that Tron’s daily active users have indeed been on the rise. The analysis revealed that Tron currently had the highest number of daily active users, outperforming Bitcoin [BTC] and Ethereum [ETH].

Source: Coin98 Analytics

Will this performance continue to support TRX’s price action?

There is no doubt that Tron’s aforementioned growth has contributed significantly to TRX’s performance

. The cryptocurrency has favored the bulls for the most part, leading to its current premium compared to its 2023 lows.

TRX exchanged hands at $0.08 at the time of writing. It might be prone to some sell pressure at its current price point. This is because the cryptocurrency is starting to experience resistance at a key level near the 0.79 Fibonacci retracement level.

Source: TradingView

The chances of a bearish outcome are further extended by the fact that TRX recently got oversold. Its recent pullback indicated rising expectations of sell pressure. An extended downside could see the price drop as low as $0.077 before another interaction with its ascending support line.

Read Tron’s [TRX] price prediction 2023-24

The bearish expectations align with the dip in investor sentiment observed in the last seven days. Its weighted sentiment metric recently dropped back almost to its weekly low. Similarly, the volatility metric is down to its lowest weekly level indicating that the previously observed bullish momentum was cooling down.

Source: Santiment

While a cooldown is expected, it is worth noting that Tron’s performance is arguably the biggest determining factor for investor confidence. As such, this may continue to fuel investor confidence, thereby limiting the potential downside.

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