Tron Sets its Sights on a Strong Recovery Following a 36% Decrease in 14 Days
During November, Tron [TRX] experienced a period of bullish activity, much like many other blockchain networks.
However, it stood out among its competitors for the high number of stablecoin transfers, an indicator of its continuous growth and progress over previous months.
An analysis by CryptoQuant demonstrated a significant increase in Tron’s USDT transfer volume in November, reaching a record $587.2 billion, the highest monthly volume ever reported by the network.
This milestone positioned Tron as the leading network for stablecoin transfers during the month, with a consistent growth trend in this area.
While Tron celebrated its stablecoin achievement, recent developments have shown a slight slowdown in its momentum.
Total Value Locked (TVL) has been steadily rising, a reflection of the network’s expansion alongside TRX price movements.
TVL in USD peaked at an all-time high earlier this month. Conversely, the TVL in TRX value has been decreasing over the past few months.
As of December 13th, the network’s TVL stood at 27.62 billion TRX, a notable drop from the peak of 83.70 billion in March this year.
The decline in dollar value can be attributed to the rally in TRX price, which has closely followed on-chain volume changes.
Although Tron has witnessed a substantial increase in daily transactions over the past year, transaction activity in December has seen a sharp decline from the highs of November.
On December 3rd, transactions reached a peak of 9.03 million but had fallen to 6.81 TXS by December 14th.
This decline suggests a decrease in hype or activity compared to the previous month.
Assessing Demand and Selling Pressure
The recent decline in TRX price reflects a trend of profit-taking that emerged following the all-time high on December 3rd.
Currently trading at $0.2878, TRX has experienced a 36% drop in the past two weeks.
Will TRX be able to reverse this trend and resume an upward trajectory, or will the bears maintain control for an extended period? Analysis from Coinglass suggests that outflows of TRX have dominated in recent weeks, particularly after the peak on December 3rd.
Over the last 12 hours, the Tron network has continued to experience significant outflows, totaling over $5.51 million.
Despite a noticeable decline over the past two weeks, Open Interest remains relatively high at $277.76 million, indicating continued interest in TRX trading.
Funding Rates have also stayed positive, suggesting that despite the recent pullback, bearish sentiments remain subdued.