TRX Price Correction Looms Despite Positive Network Reports

Despite the positive inputs that TRON blockchain has received from recent industry reports, it is under risk of a price correction as per market indicators. As per crypto analyst Ali Martinez, the TD Sequential indicator on the TRX 3-day chart has shown a sell signal, which is indicative of an impending bearish trend that will last from three to twelve days.

This prediction is supported by a great divergence between the TRX price and RSI, which shows that momentum has been slackening with an upcoming bearish trend.

The TD Sequential indicator is signaling a sell on the $TRX 3-day chart, indicating that #TRX could be heading towards a correction phase that might last from three to twelve days.

This bearish outlook is reinforced by a divergence between the #TRON price and the RSI,… pic.twitter.com/hUVCj4o60m

— Ali (@ali_charts) February 6, 2024

Growth of USDT on TRON

Messari’s recent findings have shown that USDT is gaining ground on the TRON network. In the fourth quarter, USDT volume on TRON increased by 11%, with this blockchain hosting approximately half of all issued USDT worldwide. 

This significant milestone is a testimony to the growing popularity and credibility TRON has gained in stablecoins. Furthermore, based on DefiLlama’s reports, the share of USDT dominance in the TRON network is considerable because it owns 94% total stablecoin market cap and almost 71% of global stablecoins.

TRON’s Technological Edge

TRON’s development is closely linked with infrastructure and technology improvements, which makes it more powerful in the blockchain industry. In addition, the network’s Delegated-Proof-of Stake (DPoS) mechanism and TRON Virtual Machine (TVM) make it scalable and flexible. These, along with a huge Token Value Locked (TVL), ensure that TRON is one of the leading names in blockchain technology.

Meanwhile, the results of Reflexivity Research indicate that TRON is ahead in active account indicators. This also encompasses wallet and contract accounts, which offer a wide picture of the network engagement. With a daily active accounts average of 1.9 million, TRON tops the layer-1 blockchain category, thereby proving its widespread usage and acceptance.

TRX’s Price Trend

While the growth and technological advances remain optimistic, TRON network’s native token, TRX, is set to undergo a price correction. The TD Sequential indicator’s sell signal and the RSI divergence indicate a cooling period for TRX.

TRX/USD price chart

However, despite the bearish prediction, bulls have had the upper hand in the TRXUSD market. In the last 24 hours, after support was established at the intra-day low of $0.1179, bullish momentum nullified the bear rally sending the price to a 24-hour high of $0.1246. Consequently, at press time, TRX was trading at $0.1212 a 2.28% surge from the support level.

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Kelvin is a distinguished writer specializing in crypto and finance, backed by a Bachelor’s in Actuarial Science. Recognized for incisive analysis and insightful content, he has an adept command of English and excels at thorough research and timely delivery.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.