thenewscrypto.com
- Tron (TRX) is facing downward pressure in the cryptocurrency market despite overall uptrends, with indicators suggesting a potential drawdown.
- Declining user activity on the Tron network and a significant amount of TRX tokens awaiting profit triggers contribute to the bearish outlook, dampening investor sentiment.
- Technical analysis tools like the Ichimoku Cloud confirm the bearish trend for TRX, signaling a potential further decline in price.
As the cryptocurrency market began to trend upwards, Tron (TRX) found itself swimming against the tide. The price of the popular altcoin experienced a downturn, and trend indicators suggest a potential drawdown in the near future.
Investors and analysts alike are concerned about Tron’s recent struggle to maintain its upward momentum, as the ongoing decline has significantly impacted the crypto asset’s overall growth and network performance.
Tron Faces Declining User Activity and Uncertain Profit Potential
One of the key factors contributing to Tron’s bearish outlook is the falling number of users on the network. Over the past two weeks, the weekly average number of users has decreased by 10%, dropping from 5.79 million to 5.25 million. This decline in user activity suggests that the project is losing traction, which could further exacerbate the downward pressure on TRX’s price.
Moreover, a significant portion of the TRX supply, approximately 1.36 billion tokens bought within the $0.1165 to $0.1205 range, is currently awaiting a profit trigger. However, given the current market conditions and the bearish signals surrounding Tron, it appears unlikely that this trigger will occur anytime soon. As a result, these tokens may fall back into loss-bearing territory, further dampening investor sentiment.
Tron’s price, currently trading at $0.1205, has failed to breach the resistance barrier at $0.1219, indicating a potential continuation of the ongoing decline. Technical analysis tools, such as the Ichimoku Cloud, have confirmed the bearish trend for TRX.
The Ichimoku Cloud, which provides insights into support, resistance, trend direction, and momentum, has turned red over the last 48 hours, signaling a confirmed downtrend for Tron. This is the first such instance in seven months, with the last occurrence dating back to August 2023.
As a result of these bearish indicators, Tron’s price could experience a further decline, potentially testing the support level of $0.1123. Investors and traders should remain cautious and closely monitor the market for any signs of a reversal or consolidation.
If this scenario unfolds, Tron’s price could potentially breach the $0.1219 level, invalidating the bearish thesis. However, investors should approach this possibility with caution and remain prepared for the likelihood of further downside pressure.