TRON [TRX] has retraced the majority of its gains from the fourth quarter of 2024. It witnessed a notable 180% surge in early December, reaching a peak of $0.44. However, similar to the broader market trend, most of TRX’s gains were eroded during the holiday sell-off, and the token is still in the process of staging a strong recovery as of the latest update.
Starting from January 2025, TRX has been range-bound between $0.22 and $0.27, providing an opportunity for swing traders to capitalize on the fluctuations in price levels.
TRON Cryptocurrency’s Horizontal Market Dynamics
The sideways movement could persist over the next few days, particularly due to a cautious investor sentiment leading up to the upcoming FOMC meeting.
On a technical front, the contradictory signals from the Chaikin Money Flow (CMF) indicator, which indicates low capital inflows, and the flat Relative Strength Index (RSI), suggesting subdued demand, imply that TRX might encounter limitations in a volatile market environment.
If this scenario unfolds, the price range between the highs ($0.27) and lows ($0.22) could serve as crucial levels of interest for both buyers and sellers. Nevertheless, the network fundamentals paint a more optimistic picture.
TRON’s Substantial Network Expansion
The number of users on TRON’s network has surged past 2 million, a development that CryptoQuant analyst DarkFost attributes to enhanced investor confidence in the platform, particularly following the launch of the high-yield stablecoin USDD 2.0.
The analyst highlighted that TRON recorded a $3.6 trillion transfer on January 15th, underscoring the robust growth of the network. Darkfost commented,
“The growing confidence in TRON’s expansion seems well-founded, as the count of active addresses on TRON is consistently on the rise, indicating a gradual influx of more investors into the TRON blockchain.”
With all factors considered, the short-term price outlook seems to indicate a period of consolidation. This is further reinforced by the relatively even liquidity levels between $0.22 and $0.26, suggesting that any significant liquidity movements could impact TRON’s price actions on both ends.