Tron decouples from the market: Here’s what’s going down
- Tron’s total addresses and transactions rose, reflecting increased adoption.
- Market indicators revealed the reason behind the recent uptrend.
Tron [TRX] was the only cryptocurrency on the top 10 list that decoupled from the general market trend. Notably, TRX’s price shot up by more than 2% in the last 24 hours, while others only moved marginally. Meanwhile, the blockchain’s network activity increased over the last week as well.
Read Tron’s [TRX] Price Prediction 2023-24
This is why Tron is decoupling
According to CoinMarketCap, at the time of writing, TRX was trading at $0.07699 with a market capitalization of over $6.8 billion, making it the 10th largest cryptocurrency.
A look at TRX’s daily chart revealed a few indicators that were causing the surge. For instance, TRX’s Relative Strength Index (RSI) went above the neutral mark. Its Money Flow Index (MFI) also shot up, which looked bullish for the token.
As per the MACD, the bulls were still controlling the market. Nonetheless, a few of the metrics turned bearish, suggesting a halt to the uptrend in the coming days. For example, Tron’s Chaikin Money Flow (CMF) registered a downtick.
Additionally, the Bollinger Bands revealed that TRX’s price entered a less volatile zone, decreasing the chances of an unprecedented surge over the coming days.
Like most of the market indicators, a few of the on-chain metrics also remained bullish. Positive sentiment around the token increased over the last few days, as did its 1-day price volatility. The uptick also helped TRX improve its MVRV Ratio.
Tron’s adoption is on the rise
A possible reason behind TRX’s recent growth can be its robust token burn mechanism and its increase in adoption. Notably, the supply of TRX recorded a net increase of -9.78 million on 30 August.
Moreover, TRONSCAN’s data revealed that over the last three months, nearly 1 billion tokens were removed from supply.
— TRONSCAN (@TRONSCAN_ORG) August 31, 2023
How much are 1,10,100 TRXs worth today?
The blockchain’s adoption was also on the rise, as its total addresses reached 181.8 million and its total transactions surpassed 6.3 billion. Artemis’ chart pointed out that TRX’s adoption rate gained upward momentum last week.
This was evident from the rise in its daily active addresses and transactions. Tron’s ecosystem growth seemed to have played a major role in its price trajectory over the last few days. But whether it manages to sustain the growth will be interesting to see.