TRX Sees Impact from Record-High USDT Minting on TRON
Presently, TRX appears to be displaying positive signals indicating a potential recovery. It has recorded a 1.49% increase in the last 24 hours, halting its previous week’s downturn of 9.18%.
These market gains were likely influenced by the issuance of USDT and the rise in the number of active addresses, both hitting new highs. However, a more in-depth analysis by CryptoCrypto suggests that the TRX price may not remain stable for an extended period, particularly due to the lack of significant activity from large investors and retail traders.
Surge in USDT Minting on TRON Network — What Comes Next?
The minting of USDT on the TRON network has surged notably in the past week, with an additional $1 billion injected into the total supply. As of the latest data, the total supply has reached $61.7 billion, marked by a noticeable increase denoted by the purple cloud on the chart.
Moreover, the total supply is approaching its previous peak, indicating a robust demand for USDT or stablecoins in the market, either from individual retail players or large investors.
This significant trend bodes well for TRON and could impact the price movement of TRX. Therefore, CryptoCrypto conducted an evaluation to determine the involvement of TRX whales and retail traders in the market segment seeking more USDT and the potential outcomes for TRX’s price in the near future.
Decline in Whale and Retail Investor Activity
There has been a surge in the number of TRX addresses in circulation, surpassing a new all-time high of 124.34 million addresses within the last 24 hours. This surge typically indicates a growing network adoption, although the price has shown a corrective pattern instead of following the address growth.
Further insights suggest that the lack of price growth alongside increasing addresses is due to reduced engagement from retail and whale investors.
According to data from IntoTheBlock, retail addresses with holdings ranging from $10,000 to $100,000 recorded an 8.7% decrease in trading activity. Whales holding between $100,000 to $1 million and $1 million to $10 million demonstrated declines of 49.54% and 45.44%, respectively, over the past 24 hours.
The diminished activity from these investor categories, which typically play a key role in price fluctuations, suggests a waning interest and lack of strong conviction to invest in the asset.
TRX Price Action Analysis
At the moment, TRX is consolidating within a specific range on the chart, oscillating between $0.2201 and $0.2547. This consolidation phase could pave the way for a significant price shift, aiming for $0.30 on the upside and $0.20 on the downside.
A closer examination of this range shows that TRX recently bounced off a support level and started an upward trend. Nevertheless, the momentum appears to be weak, indicated by somewhat fragile candlestick patterns.
Furthermore, the Parabolic SAR suggests a potential decline, as the dotted markers are positioned above the price candles.
If the bearish trend materializes fully, two critical levels to watch are the support at $0.2201, which could trigger a rebound. However, a failure to hold this level might lead to a drop towards $0.20.