TRON (TRX) has been facing a period of consolidation in the market, currently trading at $0.3389, down 21.4% from its all-time high of $0.4313. Investors are closely monitoring the token’s performance, waiting for a potential catalyst that could drive its next major move.
Analysts are delving into TRON’s on-chain data to gain insights into its future trajectory. CryptoQuant contributor CryptoOnchain recently analyzed the network activity and resistance levels of TRX. The analyst pointed out that TRON is currently testing its historical resistance zone, a crucial level that could determine whether the asset will rally towards higher targets or face a setback.
One key observation from CryptoOnchain is the record levels of network activity on TRON. Daily active addresses (DAA) have surpassed 2.6 million, the highest figure in TRX’s history. This surge in user activity indicates strong demand for TRON’s blockchain services, a positive signal for potential price strength. If TRX manages to break above its all-time high and sustain that level, the breakout target could range between $0.48 and $0.52, in line with TRON’s On-Chain Value Bands metric.
However, CryptoOnchain warned that TRON’s bullish scenario is contingent on maintaining its active address momentum. A decline in DAA could jeopardize the upward trend, exposing TRX to downside risks. The analyst also highlighted the importance of broader market conditions, suggesting that a potential altseason could provide the necessary momentum for TRX to achieve a breakout.
In a separate analysis, CryptoQuant contributor Amr Taha examined stablecoin flows on the TRON network, focusing on the activity of large wallets. Data revealed that wallets holding over $100 million in USDT dominated TRON’s transaction volume, coinciding with Bitcoin’s resurgence above the $110,000 level. This concentration of large transfers often precedes shifts in market sentiment, as seen in previous instances where significant USDT movements coincided with Bitcoin rallies.
Taha emphasized the significance of stablecoin liquidity in driving market cycles, noting that whale activity in USDT transfers on TRON serves as a leading indicator for market positioning and potential capital rotations into assets like TRX and Bitcoin.
Overall, TRON’s performance is closely tied to on-chain data, network activity, and stablecoin dynamics. As the market awaits a potential catalyst for TRX’s next move, investors will continue to monitor these key factors to gauge the token’s future trajectory.