Tron price remained under pressure this week, continuing a downturn that started on August 14 when it peaked at $0.3694 and has since dropped to the current $0.3200. So, will the TRX token rebound based on its strong fundamentals?
Tron Has Some of the Best Fundamentals in Crypto
Just Sun’s Tron has some of the best fundamentals in the crypto industry, which may help it bounce back in the near term.
Its main fundamental is that it is the second-biggest player in the stablecoin industry after Ethereum, with a circulating supply of $77.7 billion. Also, Tron is the biggest processor of Tether (USDT), which helps it to generate substantial sums of money each day. Data compiled by Artemis shows that the number of stablecoin addresses on Tron jumped by 3.4% in the last 30 days to 10.8 million.
Similarly, the number of stablecoin transactions rose by 4% to 75.5 million, while the adjusted transaction volume jumped to $706 billion.
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Stablecoin users prefer Tron because of its large market share and much cheaper transaction costs than many other networks. Still, despite this, Tron is one of the most profitable networks in the crypto industry. It made over $66.6 million in August and $40 million in September.
Tron’s revenue in the third quarter was $172 million, up from the $157 million it made in the same period last year. It made $172 million in the second quarter of the year.
Tron is also highly deflationary because the network burns most of its fees, which has helped reduce the supply of tokens in circulation to 94.6 million today from 95.5 million on the same day last year.
Unlike Cardano, Tron has an active ecosystem made up of over 50 applications in the decentralized finance industry with a combined total value locked (TVL) of $5.8 billion. Its bridged TVL has jumped to $86 billion, with its top tokens being JustLend and SUN.
Tron Price Technical Analysis
The daily timeframe chart shows that the TRX price has moved downwards in the past few weeks, moving from a high of $0.3683 on August 14 to the current $0.3200.
Tron price has moved below the 50-day and 100-day Exponential Moving Averages (EMA), a sign that bears remain in control for now. The two moving averages are about to cross, which is a bearish sign.
There are signs that Tron has formed a bearish pennant pattern, which is made up of a vertical line and a symmetrical triangle pattern.
Therefore, the most likely scenario is where the coin continues falling, with the next key support level to watch being at $0.2988, its lowest level on September 6. It will then bounce back and possibly retest the year-to-date high at $0.3683.
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