Tron Price Analysis: Potential Rebound Ahead Amid Falling Wedge Pattern

Tron, the cryptocurrency founded by Justin Sun, has experienced a significant decline over the past two months, erasing some of its 2024 gains. The coin’s price has dropped to $0.2575, representing a 43% decline from its 2024 high, bringing its market cap to approximately $22 billion.

Technical Analysis Suggests Potential Rebound

Despite the recent downturn, technical analysis suggests that Tron’s price may bounce back and potentially retest its 2024 high. The weekly chart indicates that Tron has remained above the 50-week moving average, signaling that its long-term bullish trend remains intact.

Additionally, Tron has formed a falling wedge pattern, characterized by two descending and converging trendlines. This chart pattern often leads to a strong bullish breakout when the two lines approach their confluence. Furthermore, Tron has formed a doji candlestick pattern, identified by a small body with long upper and lower shadows. These chart patterns collectively point to a potential rebound in the coming weeks.

Tron Network Profitability and Supply

Meanwhile, Tron has established itself as the most profitable layer-1 network in the crypto industry, generating $1.44 billion in fees over the past six months. This is significantly higher than Ethereum’s $857 million and Solana’s $636 million in the same period. Tron holders receive a portion of these fees as staking rewards, with a current staking yield of approximately 4.5%, higher than Ethereum’s 3%.

Another critical factor is the decreasing supply of Tron in circulation. With an annual deflation rate of -2.83%, Tron is one of the most deflationary tokens in the crypto industry. There are currently 86.14 billion TRX tokens in circulation, down from 88.6 billion on the same date last year.

Tron Adoption and Account Growth

The number of Tron account holders has also grown steadily, further solidifying its position as one of the most active networks in the crypto space. There are currently over 165.17 million accounts holding TRX, up from 114 million on the same day last year. This growth signals increasing adoption among investors.

In addition to its growing user base, Tron’s network handles substantial sums of Tether, with a volume worth $156 billion on Thursday, up by 18% from a day earlier.

As Tron’s technical analysis suggests a potential rebound, investors may want to keep a close eye on the cryptocurrency’s price movements in the coming weeks.

For more news on Tron and other cryptocurrencies, visit Global Crypto News.

Post Views: 1