Tron can easily overtake Ethereum, but for…
- Tron’s TVL increased by 1.5% in the last 24 hours.
- TRX’s RSI was overbought, and several indicators were bearish.
Tron [TRX] outperformed the rest of the crypto market in terms of revenue generated. Token Terminal’s 28 May tweet revealed that Tron was only behind Ethereum [ETH] on the list of blockchains by revenue in the last seven days.
protocols that made the most money over the past 7 days: pic.twitter.com/8ZNfDOYDXc
— Token Terminal (@tokenterminal) May 28, 2023
While Tron grabbed the second spot, Lido [LDO] sat in the third position. Though this looked encouraging, investors might have reasons for concern, as a few metrics suggested that TRX’s price pump could soon come to a halt.
What caused the rise
A few on-chain metrics revealed the reason behind Tron’s meteoric rise. Notably, as per Artemis’ data, TRX’s daily active addresses spiked and reached 2.3 million earlier in May.
The network’s daily transactions also surpassed 9.6 million in the same time frame.
Investors seemed to have been actively trading the token, as its DEX volume also registered an uptick. Additionally, TRONSCAN’s data revealed that TRX’s total addresses crossed 162 million, reflecting increased adoption of the blockchain across the globe.
Apart from these, another positive update was related to Tron’s DeFi performance. DeFiLlama’s data revealed that TRX’s TVL had increased by more than 1.5% in the last 24 hours.
Market sentiment was unaffected
Though the aforementioned metrics looked promising, they could not turn market sentiment in TRX’s favor. The last week witnessed a massive decline in TRX’s weighted sentiment. Similarly, the token’s popularity registered a decline, as evident from its social volume.
Tron investors have concerns
Tron’s price was not volatile last week, as it only moved marginally. According to CoinMarketCap, TRX’s price moved in less than single digits both during the last seven days and the last 24 hours. At the time of writing, it was trading at $0.07766 with a market capitalization of over $7 billion.
But the days might get colder, as a few datasets were bearish. CryptoQuant’s data revealed that at press time, TRX’s Relative Strength Index (RSI) was in an overbought position, thus increasing selling pressure.
Read Tron’s [TRX] Price Prediction 2023-24
Should investors expect a price dip?
As per TRX’s daily chart, its Chaikin Money Flow (CMF) had registered a downtick. Though the bulls were still ahead, the MACD displayed the possibility of a bearish crossover soon.
Tron’s Money Flow Index (MFI) was also resting right near the overbought zone, which further suggested a price correction. Nonetheless, the Exponential Moving Average (EMA) Ribbon continued to support the bulls.