Tron price has joined the ongoing crypto bloodbath as the crypto shakeout accelerates. The token peaked at $0.1447 in March and then tumbled to a low of $0.11, its lowest level since February 2nd of this year. It has plunged by more than 20% from the YTD high, meaning that it has dropped to a bear market.
Crypto bloodbath continues
Tron price tumbled because of the rising fear and profit-taking in the crypto industry. Bitcoin has crashed to $62,000 from last week’s high of $73,500. Other coins like Ethereum, Polygon, Avalanche, and Solana have all dived.
Tron has retreated as the crypto fear and greed index moved from the extreme greed zone of over 85 to the greed point of 74.
It also declined amid a slow growth of Tron’s ecosystem. The most recent data by DeFi Llama shows that Tron has a total value locked (TVL) of more than $9.14 billion. It has moved back above Solana to become the second-biggest chain in the industry.
The biggest players in Tron’s ecosystem are the likes of JustLend, JustStables, stUSDT, and Sun. JustLend’s TVL has grown by just 6.6% in the past 30 days while JustStables and stUSDT has crashed by 18% and 3.7%.
Data also shows that Tron is the second-biggest player in the stablecoins industry. It has over $63 billion worth of stablecoins compared to Ethereum, which has over $76 billion worth of stablecoins. Binance Chain has $4.7 billion while Solana has $2.8 billion.
The main challenge that Tron is facing is that competition in the developer community has risen sharply recently. Many developers are selecting chains like Solana, which are known for having low transaction costs and superior speeds.
They are also selecting layer-2 networks like Base, Arbitrum, Polygon, Blast, and Optimism. These layer-2 networks have seen so much interest from developers because of their superior speeds and lower costs. For example, Heroes of Mavia, one of the top blockchain games in the industry, selected Base as its network of choice.
Tron price forecast
Turning to the daily chart, we see that the TRX token price has been in a strong sell-off in the past few days. It has tumbled in the past eleven days straight and is now hovering at its lowest point since February 1st.
Tron price is along the 200-day Exponential Moving Average (EMA) while the MACD has remained in the deep red area. Therefore, at this stage, the outlook for Tron is neutral. More downside will be confirmed if it drops below the 200-day moving average.
If this happens, it will raise the possibility of the coin forming a death cross when the 50-day and 20-day moving averages cross each other. The alternative scenario is where it bounces above the 200-day MA and retests the resistance point at $0.13.
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