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Tron investors have all the reasons to maintain caution this crypto winter



TRX might soon witnesses a cold winter if these are not checked 
Source: StockAI

  • Tron’s Relative Strength Index (RSI) was overbought at press time
  • TRX’s metrics and market indicators strongly favored the bears  

Tron’s [TRX] price action of last week was extremely sluggish, as it registered negative growth. New data from CryptoQuant revealed that the upcoming days might be even worse, as TRX’s RSI was in an overbought position. This pointed towards a further decline in its price.

At the time of writing, TRX was down by more than 1% in the last 24 hours and was trading at $0.05328 with a market capitalization of more than $4.9 billion. However, TRX could witness a change in trend considering the last few developments. 

Read Tron’s [TRX] Price Prediction 2023-2024

Where does Tron stand? 

Last week, the Dominican government gave Tron an allowance to issue Dominica’s national token. This was an optimistic update as it reflected increased adoption of Tron on a global scale. Justin Sun, the founder of Tron, also joined the Reuters NEXT Leadership Summit online and gave multiple interviews on the theme of “crypto winter.”

Nonetheless, things did not seem to work in TRX’s favor on the metrics front. For instance, since the beginning of this month, Tron’s total value witnessed a downfall. Furthermore, Santiment’s chart revealed several more metrics that indicated a price fall.

For instance, TRX’s development activity went down over the last week. TRX’s volume also followed a similar path and declined. Additionally, TRX also failed to gain interest from the derivatives market as its Binance funding rate was consistently low.

Source: Santiment

At the mercy of the bears

Not only the metrics, but quite a few market indicators also supported the bears. TRX’s Money Flow Index (MFI) was hovering around the overbought zone, which was a negative signal.

The 50-day Exponential Moving Average (EMA) (red) was also considerably above the 20-day EMA (green), further increasing the chances of a downtrend. However, the Moving Average Convergence Divergence (MACD) provided a much-needed relief as it revealed that the bulls still had the upper hand in the market.

Source: TradingView

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Ser Suzuki Shillsalot has 8 years of experience working as a Senior Investigative journalist at The SpamBot Times. He completed a two-hour course in journalism from a popular YouTube video and was one of the few to give it a positive rating. Shillsalot's writings mainly focus on shilling his favourite cryptos and trolling anyone who disagrees with him. P.S - There is a slight possibility the profile pic is AI-generated. You see, this account is primarily used by our freelancer writers and they wish to remain anonymous. Wait, are they Satoshi? :/

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