Tron (TRX) investors continue to feel bullish even as the market falls after certain developments in the chain have kept investor sentiment high. According to CoinGecko, the token is up more than 24% since last week, a sign that investors on the platform have been holding TRX and rallying to capture more profits.
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Tron’s developments will help TRX hold up against the downward trajectory the market has been on today. However, questions remain as to whether the token will continue to move against the broader market or follow the dip.
Tron-on-chain developments make TRX sky high
With Tron’s focus on stablecoin development made clear by Tron founder Justin Sun last month, yesterday the platform saw a big win Tether struck over $1 billion USDT without paying any gas fees on the platform. This put Tron in the crosshairs of critics as they questioned the “no gas fee” transaction, with one individual pointing out that they were charged a dollar for a simple exchange approval.
Our team is developing a new solution that enables gas-free stablecoin transfers. In other words, transfers can be made without paying any gas tokens, with the fees fully covered by the stablecoins themselves.
— HE Justin Sun 孙宇晨(hiring) (@justinsuntron) July 6, 2024
Despite this, Tron completed a third of Visa’s annual settlement volume, while raking in over half a billion dollars in fees in just three months. According to Tron, this makes it clear that “blockchain is more than just a buzzword.”
TODAY: $1 billion USDT minted on TRON
They paid € 0.00 in costs.
Wow pic.twitter.com/NuNYRuj1Yc
— Arkham (@ArkhamIntel) August 20, 2024
Will TRX face a possible downturn soon?
The token’s current position is a tricky balance between the bulls trying to break the $0.1665 ceiling and the bears also trying the opposite by looking at the $0.1583 bottom.
As it currently stands, TRX is in an unsustainable position as it forces the bulls to continue buying without considering the token’s overall momentum. The relative strength index (RSI) supports this as it approaches the limits of bullish momentum, with a possible cool-off period in the next few days.
Taking into account the overall momentum of the market, we could see TRX stabilizing at its current trading range between $0.1583 and $0.1665 in the near term. The near maximum value of the RSI signals a possible return to the $0.1532 bottom before opening the floodgates to $0.1665.
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This scenario is possible because TRX will eventually lose its current momentum to follow the consensus dip within the broader market. The dip, while bearish in some respects, will give the bulls a chance to rest before building momentum for bigger gains.
With improving macroeconomic conditions also supporting this bullish thesis, we may be able to make more profits as capital flows from private equity into riskier investment products such as crypto. For now, monitoring the broader market will benefit investors as TRX moves toward more sustainable levels.
Featured image of Zipmex, chart from TradingView
