The Tron price has been in trouble recently. TRX, its native token, is trading at $0.065, which is the lowest it has been since August last year. It has dropped by about 63% from its highest level in 2021, bringing its total market capitalization to over $6.6 billion. This makes it the 28th biggest cryptocurrency in the world.
TRX sell-off
Tron is a well-known blockchain network that was started by Justin Sun, one of the youngest people in the industry.
Tron is an operating system that has smart contract features. This means that developers are able to build applications on top of its technology. And recently, the number of developers embracing the network has been rising.
According to DappRadar, the biggest app built in Tron is known as SunSwap. It is a decentralized trading platform that enables people to swap tokens. The network processed tokens worth over $211 million in the past 30 days.
The next biggest platform built using Tron’s network is JustLend, which describes itself as the first official lending platform on Tron. It has a total value locked of over $1.2 billion.
Other top projects built on Tron are Wink, Infinity Stones, TronTrade, and SocialSwap. According to DeFi Llama, there are about 15 DeFi apps in Tron that have a total value locked (TVL) of over $4.7 billion in TVL. This makes it the eighth biggest smart contract platform in the world.
The Tron price has lagged substantially in the past few months as demand for the coin has evaporated. Also, there are concerns about the Federal Reserve, which is now committed to keeping hiking interest rates in a bid to slow down inflation.
Still, fundamentally, a case can be made that Tron will make a comeback. For one, it is not the first time it has tumbled by over 50%. Also, it is a platform that is becoming popular among developers.
Tron Price prediction
The daily chart shows that the TRX price formed a double-top at around $0.122 level in the third and fourth quarters of 2021. In price action analysis, a double-top pattern is usually a bearish sign, which explains why it tumbled.
It moved below the 25-day and 50-day exponential moving averages (EMA). Worse, it has formed a death cross, where the 200-day and 50-day moving averages make a crossover.
Therefore, the path of the least resistance for Tron price is lower, with the next key level to watch being at $0.046, which is about 30% below the current level.
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