- Tron price has done better than most cryptocurrencies.
- The number of active TRX holders has slumped to 1.67 million.
- Justin Sun announced a new $100 million AI ecosystem fund.
Tron price has held quite well in the past few weeks amid encouraging on-chain metrics. TRX rose to a high of $0.066, the highest point since February 9 of this year. It has jumped by 6.3% from its lowest point last week, outperforming other top cryptocurrencies like Bitcoin, Render Token, and Dogecoin.
Mixed on-chain metrics
Tron price has rallied in the past few weeks. This rebound is mostly because of Justin Sun’s recent announcement about AI. In it, he said that Tron Foundation would launch a $100 million AI development fund.
Justin Sun hopes that Tron will become the default blockchain for artificial intelligence developers. AI has become a major theme this year, with most AI stocks and cryptocurrencies like AGIX and Fetch.ai have been soaring.
Analysts believe that AI will change the world. For example, Microsoft’s Bing search engine seems to be doing much better than Google. Therefore, by positioning Tron as the default blockchain for AI, Sun hopes to take a market share in an enormous industry.
Read more: How to buy Tron in the US.
However, some analysts believe that Tron faces an uphill battle in the sector. Some believe that by infusing AI in Tron, Sun wanted to push the TRX price higher. Besides, all cryptos with an AI angle like SingularityNET, SingularityDAO, and The Graph surged.
Meanwhile, Tron is having mixed on-chain metrics. There are now over 142 million TRX total accounts and over 92 million holders. However, as shown below, the number of active accounts has been in a strong downward trend. It reached a low of 1.67 million, the lowest point since March 30 last year.
On a positive side, TRX supply has been in a downward trend. There are now over 91.6 billion TRX in circulation, lower than last year’s high of over 92 million. Lower supply is a positive thing for price since it shows that burn rate is rising.
Further, Tron’s TVL has overtaken that of BNB Chain again. It stands at $4.2 billion, which is higher than BNB Chain’s $4 billion. In Tron’s terms, it stands at over 74 billion TRX, which is slightly lower than last year’s high of 90 trillion TRX.
Tron price prediction
On the daily chart, we see that the TRX crypto price dropped to a low of $0.045 in December last year. It has now risen by more than 45% from the lowest point this year. Tron has moved above the 38.2% Fibonacci Retracement level.
It has moved above the key support at $0.0576 (21 September low). Tron is also being supported by the 25-day and 50-day moving averages. TRX has also formed a rising wedge pattern. Therefore, there is a likelihood that it will have a bearish breakout, with the next key support being at $0.057, which is about 12% below the current level.
