Tron price has remained in a tight range in the past few months, even as the network continued to boom. The TRX token was trading at $0.2857 on Sunday, its highest point since December last year and 33% above the lowest point this year.
Tron Price Technical Analysis: Wyckoff Theory
The daily chart shows that the TRX token price has held steady in the past few months. It has moved slightly above the 50-day Exponential Moving Average (EMA), a sign that bulls are in control.
Most importantly, the Wyckoff Theory suggests that the coin is in an accumulation phase. This phase is characterized by low volume and sustained consolidation, and is usually followed by the markup phase.
Markup, on the other hand, is characterized by higher demand than supply. It resembles what happened with Monero, which recently made a strong bullish breakout, leading to a strong surge to nearly $500.
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Tron price has formed an inverse head and shoulders pattern, one of the most bullish signs in technical analysis. This pattern comprises of a neckline, a head, and the right and left shoulders. Tron has recently moved above and then retested th neckline at $0.2598.
The Relative Strength Index (RSI) and the MACD indicators have all pointed upwards, with the MACD remaining above the zero line since April.
Therefore, the token will likely bounce back, and possibly retest the key resistance at $0.4488, its highest point since November last year. Such a move will be 56% above the current level. A move below the support at $0.2500 will invalidate the bullish outlook.
TRX price chart | Source: TradingView
Stablecoin Growth to Fuel TRX
The main catalyst for the TRX price is the stablecoin growth. This is notable becaus Tron is the second-biggest holder of stablecoins after Ethereum. Its network has over $77 billion in stablecoins, mostly Tether.
Data shows that Tether processed USDT tokens worth over $52 billion on Saturday, a 28% drop from a day earlier. This decline is understandable since fewer people transact on stablecoins during the weekend. It is common for Tron to handle over $100 billion in USDT transactions during weekdays.
This growth will likely keep accelerating in the future as the stablecoin industry surges. Analysts at Visa predict that these tokens will be worth over $1.6 trillion in 2030, benefiting Tron.
That’s because it is the biggest processor of USDT, which makes it the most profitable chain in the crypto industry. Higher stablecoin volume and revenue means that more TRX tokens will be incinerated in the future.
The biggest risk facing Tron is that Tether has “refused” to be regulated. It does not comply with MiCA, which has seen European exchanges warn that they will delist it. Tether does not comply with GENIUS Act, which may see it delisted by US-based exchanges.
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