- Tron crypto price has formed a bearish flag on the daily chart.
- The total value locked in Tron’s ecosystem has been in a downtrend.
- Tron is still a popular blockchain with over 1M daily users.
Tron price came under intense selling pressure as Bitcoin and other altcoins recoiled. TRX plunged to a low of $0.075 on Wednesday, the lowest level since July 2nd. In all, the token has dropped by almost 20% from its highest level in 2023, meaning it is about to move into a bear market.
Crypto winter continues
Tron has not been left behind in the ongoing crypto winter, which has affected most cryptocurrencies. Bitcoin, the biggest cryptocurrency in the world, has dropped from the YTD high of $32,000 to $29,000.
Tron’s ecosystem is struggling. Data compiled by DeFi Llama shows that its DeFi ecosystem has a total value locked (TVL) of more than $5.3 billion, down from the year-to-date high of over $6 billion. In TRX terms, the TVL stands at 75 billion TRX, down from the all-time high of 104 billion.
Read more: How to buy Tron.
A quick look at its ecosystem shows that funds have moved out of the most platforms, including JustLend, JustStables, SUN, and SocialSwap among others. This trend is normal when cryptocurrencies are not doing well.
Despite all this, Tron remains a popular cryptocurrency among users. It had over 1.41 million users in the past 24 hours. It also generated over $1.1 million in fees in the same period. Ethereum, which is bigger than Tron had 300k users and generated over $5.14 million in fees.
Tron is also a big player in the stablecoin industry. It holds over $43 billion in stablecoins, which is further evidence of its popularity.
Looking ahead, Tron price will react to the upcoming minutes by the Federal Open Market Committee (FOMC). These minutes will provide more color about the state of the economy and what to expect in the next meetings.
Tron price prediction
The daily chart shows that the TRX price has made a bearish breakout in the past few weeks. Most recently, the coin has formed a bearish flag pattern as shown in blue. This pattern is characterized by a flag pole and a flag.
Tron price has also dropped below the 50-day moving average and the support at $0.080. Therefore, Tron price will likely continue falling as sellers target the ascending trendline at ~$0.075. This trendline connects the lowest levels since November last year.
