Tron’s TRX Price: Struggles Persist Despite Record Transaction Volume
The price of Tron’s native cryptocurrency, TRX, has been on a downward trend in recent weeks. After peaking at $0.45, TRX has steadily declined, hitting a low of $0.24.
As of the time of writing, Tron is trading at $0.2643, indicating a 3.11% drop in daily trading. The coin has also experienced a 10.29% decrease over the past week.
Despite the price decline, Tron has shown remarkable progress in terms of transaction volume. Recent data from Cryptoquant reveals that Tron has surpassed all other blockchains in the number of transactions conducted.
Tron’s Remarkable Transaction Numbers
An analysis by Cryptoquant’s analyst CrazzyBlockk has highlighted Tron’s consistent lead in transaction numbers for the past three months.
Over the last quarter, Tron has outperformed its competitors in terms of monthly transaction volume. The coin recorded 182 million, 167 million, and 135 million transactions in October, November, and December respectively.
This surge in transactions comes at a time when Telegram-based games on the Ton network are losing popularity. Tron has stepped in to fill this void, leading to a notable increase in USDT movements on its blockchain.
Most of this growth in USDT activity on the Tron network can be attributed to its use in cryptocurrency trading and other transactions.
What Does This Mean for TRX’s Price Performance?
Despite the significant increase in transaction volume, Tron’s price has faced strong bearish sentiment over the last two weeks.
The spike in transactions across various blockchains has not translated into a positive impact on TRX’s price movement.
Market analysis by CryptoCrypto has shown a bearish sentiment prevailing, with a bearish crossover on Stoch in the past 24 hours indicating active selling pressure and a growing downward momentum.
This downward trend is further corroborated by the RVGI nearing a bearish crossover. Another bearish crossover would confirm the ongoing downtrend.
Furthermore, data on Tron’s netflows on aggregated exchanges suggests a higher inflow of tokens into exchanges than outflows. This indicates that investors are either selling their holdings or preparing to do so.
A similar trend is visible among large holders, with netflows dropping to -168.55 million, signifying a significant outflow of capital by whales.
Despite Tron’s dominance in transaction volume, TRX is currently in a corrective phase. With the market sentiment leaning towards negativity, TRX’s price might experience further declines.
If the current conditions persist, TRX could potentially fall to $0.24. However, a scenario where increased transactions positively impact the coin’s price charts could see Tron reclaiming the $0.304 resistance level.