The crypto world saw Tron (TRX) hit a remarkable milestone last month, reaching $0.44 – its highest price point ever. This achievement came after months of steady growth throughout 2024. Yet, as often happens in crypto markets, a correction followed, bringing TRX down to around $0.26. What makes this particular movement interesting is how it played out against Tron’s growing ecosystem numbers.
The correction, which has lasted about two weeks, has sparked discussions about TRX’s next move, especially considering its strong performance before the December peak. As we step into 2025, all eyes are on whether TRX can mount another climb toward its recent high.
Network Growth and Revenue Milestones Signal Strong Fundamentals
Tron’s ecosystem closed out 2024 with remarkable achievements, generating $2.12 billion in revenue and surpassing both Ethereum and Solana in this metric. This impressive performance stems from the network’s growing adoption, particularly in the stablecoin sector, where it processes millions of USDT transactions daily.
The platform’s success is further evidenced by its consistent transaction metrics, maintaining over 180 million monthly transactions from October through December 2024. The network’s steady growth hasn’t gone unnoticed by the market, despite the recent price correction. Even during the dip from the $0.44 peak, Tron’s fundamental metrics have remained robust, with transaction volumes holding steady. This resilience in network activity suggests that the current price level around $0.25 might not fully reflect Tron’s operational success.
The platform’s expanding ecosystem and record-breaking transaction metrics have maintained strong support levels, particularly notable given the broader market conditions. These developments point to a disconnect between Tron’s growing utility and its current market valuation. Consequently, they could set the stage for price recovery as the market begins to factor in these fundamental strengths.
TRX Technical Analysis Points to Potential Recovery
The recent price action of TRX shows an interesting pattern of consolidation following the December correction. The daily chart reveals TRX trading in a tight range between $0.25 and $0.26, with the Bollinger Bands narrowing significantly – a pattern that often precedes a decisive move. The MACD indicator has begun showing signs of positive momentum, with the signal line making a subtle upward cross, suggesting building bullish pressure.
What’s particularly noteworthy is the formation of a series of higher lows since December 19th, when TRX found strong support around the $0.23 level. This gradual building of support, combined with decreasing volatility as shown by the tightening price range, indicates accumulation at current levels. The 20-day Simple Moving Average (SMA) is providing immediate support at $0.259, with price action consistently respecting this level over the past week.
Monthly Trading Chart For TRX. TradingView
In conclusion, the technical setup at the time of writing this article suggests TRX is in a critical phase. The convergence of multiple technical indicators – the narrowing Bollinger Bands, positive MACD momentum, and stable support at the 20-day SMA – typically signals the end of a consolidation period. While the immediate resistance sits at the $0.27 mark, a breakthrough above this level could open the path for a more substantial recovery toward previous highs.
Trading volume has remained relatively stable during this consolidation period, indicating neither significant selling pressure nor immediate buying interest. This stability in volume, coupled with the technical indicators, suggests that TRX might be preparing for its next significant move as we progress into early 2025.
