Since November’s post-U.S. election rally, Tron (TRX) has faced challenges in maintaining an upward trajectory throughout December.
Consequently, TRX has seen a decline from its peak of $0.45 to a low of $0.22 over the past three weeks.
The current market conditions have sparked discussions among analysts regarding Tron’s future direction. One analyst, Burak Kesmeci from CryptoQuant, has expressed optimism about a possible trend reversal, pointing to Tron’s potential local bottom.
Tron’s Potential Local Bottom
In his assessment, Kesmeci suggested that Tron’s price heatmap is indicating the presence of a potential local bottom.
He noted that Tron’s price heatmap has historically played a critical role during bullish phases, often serving as a support level or indicating a local bottom.
A local bottom usually signals the conclusion of a downtrend and a potential shift towards an uptrend.
Examining the altcoin’s price heatmap, different trends are identified, such as the green trend at 0.23, the purple trend at 0.40, and the blue trend at 0.49.
During a bull market, these levels typically trend higher due to increased interest and demand. In the current market cycle, the blue and purple trend levels are acting as resistance zones.
Therefore, Kesmeci believes that a drop below the green trend could indicate considerable weakness in the ongoing bull cycle, while holding this level may signify the beginning of a new upward trend.
If demand rises, prices could target the resistance zones around 0.49 and 0.40. Breaking above the 0.40 trend levels is expected to boost market confidence and create upward pressure on prices.
The increasing demand for the Tron blockchain, despite TRX’s struggles with maintaining an uptrend, is noteworthy.
Notably, the USDT supply on the Tron Blockchain has exceeded $61 billion, reflecting a growing demand and adoption rate.
This growth has witnessed a consistent uptrend, climbing from $32 billion in 2022 to $61.76 billion in 2024, representing a 28.7% increase over the year from $48 billion.
Tron’s lead over other blockchains in terms of adoption signals its potential to attract a larger user base in the future.
As user numbers grow and adoption rates increase, this is likely to have a positive impact on TRX’s price performance.
Future Outlook for TRX
If the observed demand for TRX continues as predicted by analysts, the altcoin could experience further gains, especially with the expanding use of the Tron blockchain.
If a trend reversal materializes, as indicated by the price heatmap, TRX may target $0.275 in the short term, with a potential move towards $0.3 upon breaking above this level.
However, failing to maintain the current trend could see TRX dropping back to $0.22.