Impact of TRX Price: Surge in USDT Creation on TRON Nearing All-Time High
Currently, TRX appears to be showing optimistic signals suggesting a potential recovery, with a 1.49% increase in the last 24 hours, reversing the 9.18% losses from the previous week.
The recent market upturn can be attributed to the significant increase in USDT creation and the rise in the number of active addresses. However, a detailed analysis by CryptoCrypto indicates that the TRX price may not maintain its strength for long, particularly due to limited activity from large investors and retail traders.
Surge in USDT Creation on TRON—Predictions for the Future
Over the past week, the creation of USDT on the TRON network has surged remarkably, adding $1 billion to the total supply. Currently, the total supply stands at $61.7 billion, showcased by the purple cloud on the chart.
Furthermore, the current supply is approaching its previous peak, signaling a strong demand for USDT or stablecoins in the market, whether from small retail traders or large investors.
This uptrend bodes well for TRON and could potentially impact the price movement of TRX. Consequently, CryptoCrypto has delved into whether TRX’s large investors and retail participants are part of the group seeking additional USDT and what this could mean for TRX’s future price movements.
Diminished Activity among Whales and Retail Traders
There has been a notable increase in the number of TRX addresses in the market, surpassing a new record of 124.34 million addresses within the last 24 hours. This surge in addresses typically indicates a growing adoption of the network, yet prices have remained in a corrective phase.
Further analysis shows that the lack of price growth despite the surge in addresses can be attributed to reduced engagement from both retail traders and large investors.
According to data from IntoTheBlock, there was an 8.7% drop in transaction activity among retail addresses holding between $10,000 and $100,000. Whales, especially those holding between $100,000 and $1 million and $1 million to $10 million, saw declines of 49.54% and 45.44%, respectively, in the last 24 hours.
Reduced activity among these groups, which typically influence price movements significantly, indicates waning interest and uncertain conviction in purchasing the asset.
TRX in Chart Analysis—A Continual Loop
Currently, TRX is consolidating within a defined range on the chart, oscillating between $0.2201 and $0.2547. This consolidation could foreshadow a significant price movement, with upper resistance at $0.30 and lower support at $0.20.
An in-depth analysis of this range reveals that TRX has recently rebounded from a support level and trended upwards. However, the momentum appears feeble as the candle patterns seem somewhat fragile.
Moreover, the Parabolic SAR indicates a potential downward trend, with the dotted markers positioned above the price candles.
In case the bearish trend materializes entirely, two vital points are of interest. The initial point would be the support level at $0.2201, likely prompting a rebound. However, failure to sustain this level might lead to a further decline towards $0.20.