• Deciphering whether Tron [TRX] is still clinging to some of its recent advances

  • TRX, the native cryptocurrency of the Tron blockchain, was one of the best cryptocurrencies to hold during the recent market fall. It also appears to be holding up well despite the present market turmoil.

    TRX has been on fire since the second week of April, while the rest of the market has been in the red owing to a bearish onslaught. It climbed ahead of the debut of the USDD stablecoin in the first week of May. When UST plummeted, TRX too had a bearish shock, although it appears that the fall was buffered.

    TRX reached a high of $0.092 on May 8 before plummeting to $0.063 on May 12 as the rest of the market bottomed out. While most of the leading cryptocurrencies went deep enough to retest 2021 price levels, it was still trading at a significant premium to its April lows. TRX was trading at $0.074 at the time of publication, up 4.63 percent in the previous 24 hours.

    Despite the fact that TRX is currently trading at an 18% discount to its 8 May high, its technical indications remain robust. Despite significant inflows, its RSI has been lingering in the neutral zone, according to the MFI. The MFI illustrates directional momentum uncertainty, although the bears appear to be gaining for the time being.

    The role of USDD in TRX’s performance

    TRX’s strong position may have been helped by rising USDD volumes. Some traders that favor decentralized stablecoins switched to USDD, which explains the increase in volume.

    At the time of writing, the stablecoin’s 24-hour volume had increased by 133 percent. During the same time span, stablecoin volume and demand influenced TRX supply and demand.

    Despite the 24-hour uptick, whales’ supply gauge has seen outflows from whale addresses in the last three days. Although this indicator is currently near four-week lows, its market capitalization has climbed, indicating a minor uptick. After a big rise during the USDD stablecoin launch week, Santiment’s on-chain volumes have likewise bottomed down.

    TRX’s growing market capitalization indicates that it is holding up well despite the current market conditions. Whales and institutions, on the other hand, have not started purchasing again after the downturn, indicating that they are waiting for the risk to pass.

    Investors should watch for more selloffs, which might indicate more downside, or an upswing, which could indicate a more positive recovery.

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