The Tron price remained steady this week as crypto investors stayed on the sidelines. TRX token was trading at $0.24 on Friday, slightly below this week’s high of $0.2595. This article explains why technical indicators suggest a TRX price surge in the coming days.
Tron Price Technical Analysis
The daily chart indicates that the TRX token reached its bottom at $0.2015 earlier this year and has since rebounded to $0.24. It formed a falling wedge pattern, which comprises two descending and converging trendlines.
A falling wedge is one of the most popular bullish reversal signals in the market. This explains why the coin has rebounded and recently surpassed the upper boundary of the falling wedge pattern.
Tron price has moved above the 50-day and 100-day Exponential Moving Averages (EMA), a sign that bulls are starting to gain momentum.
It has also formed a small bullish flag pattern, consisting of a vertical line and some consolidation. This pattern often leads to a bullish breakout. Therefore, the path of least resistance is bullish, with the next point to watch being at $0.2745, its highest level in January, which is about 11% above the current level.
The bullish outlook becomes invalid if the Tron price falls below the upper boundary of the falling wedge pattern at $0.2300. If the price falls below this level, it would invalidate the bullish forecast and suggest further decline, potentially reaching the psychological level of $0.20.
Tron Has Strong Fundamentals
In addition to technicals, the Tron price has some strong fundamentals that may push its price higher over time. For example, Tron is the biggest processor of Tron transactions in the industry. Data shows that it handled over $47 billion in transactions on Thursday, positioning it as one of the major players in the finance sector.
USDT transactions are significant because Tron applies a small fee to each transaction it processes. These fees add up, and Tron is now the most profitable chain in the crypto industry with over $970 million in fees this year.
Tron collects some of these fees and burns them, making TRX a truly deflationary coin. As a result, the number of TRX tokens in circulation has continued to fall. The supply dropped by about 2.29 million in the last 24 hours, reaching 94.95 billion, down from over 100 million a few years ago.
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