TRON's TRX token saw a 0.82% price increase over the last 24 hours to $0.08495. This comes after a period of rangebound trading for the past month between $0.08 and $0.09. With a market capitalization of $7.57 billion, TRON remains one of the top 15 cryptocurrencies by market cap.
The 24-hour trading volume for TRX of $137.79 million indicates a decent amount of interest and trading activity around this altcoin. In this technical analysis, we'll examine the key metrics around TRON's price action and explore what they might mean for the project's outlook going forward.
Summarizing the Recent TRON Price Data
Zooming out beyond the past 24 hours of trading, we can see that TRON's price actually dipped over the past week, down 0.70%. However, over the past month, TRX has seen substantial gains of 9.58%.
The 6-month view is even more impressive, with TRX up 32.19% over that timeframe. So while the hourly and daily charts show choppy back-and-forth price action, the bigger picture is clearly bullish for TRON from a technical perspective.
Now let's dive deeper into the metrics and indicators around TRON to understand what traders and investors should watch going forward.
TRON Network Activity Remains Strong
Despite some weakness in TRX price over the past week, on-chain data shows that activity on the TRON network remains robust. Transaction counts are hovering around 1.5 million per day, in line with averages over the past few months.
Additionally, active TRON wallet addresses just hit an all-time high above 79 million this month. This indicates more users are engaging with decentralized applications (dApps) and services built on top of TRON.
As long as developers continue building on TRON and user activity grows, that will provide fundamental support for TRX price in the long run.
TRX Testing Key Support Around $0.08
From a technical charting perspective, TRX appears to have found a key support zone between $0.08 and $0.082. This area lines up with the 21-week exponential moving average and the 38.2% Fibonacci retracement level from TRX's 2022 high and low.
So far, buyers have defended this zone, preventing any larger breakdowns. If TRX can build momentum and break above short-term resistance around $0.09, that would open the door for a retest of 2022 highs near $0.12.
However, failure to hold the $0.08 support could see TRX revisiting the 2022 low near $0.065. TRX's trading range is clearly defined for now between those two price levels.
Aiming for the Top 10 Again in 2023
Looking ahead, TRON has a good chance of reclaiming a spot in the top 10 cryptocurrencies by market capitalization over the next year. It previously held that status through 2021 before declining in 2022 along with the overall crypto market.
But given TRON's strong developer ecosystem and real-world usage for payments, gaming, and more, it is undervalued compared to competitors. As TRON network activity and fundamentals continue improving, TRX price should reflect that in the coming months.
A return to the top 10 would require around a 100% gain from current levels. While far from guaranteed, the probability seems higher than most other altcoins outside the top 20. TRON has already proven itself as one of the most utilized blockchains globally.
Will decentralized finance and Web3 drive further TRON adoption?
Decentralized finance (DeFi) and Web3 applications present huge opportunities for driving further adoption of the TRON blockchain. TRON is already a leader in decentralized stablecoins with over $7 billion worth minted.
As crypto payments and DeFi lending/borrowing become more mainstream, TRON is well-positioned to capitalize as its low fees and high throughput support these use cases. Additionally, TRON's NFT ecosystem is expanding, especially for gaming and metaverse applications.
More developers building cross-chain bridges and integrations between TRON and Ethereum will also boost TRON's utility in Web3. If these trends accelerate, expect TRON's activity and price to surge accordingly.
Can TRX price reach a new all-time high in 2023?
After declining significantly from its all-time high near $0.30 in early 2018, there is a reasonable chance TRX could finally take out that level in 2023 if market conditions align favorably. Based on current on-chain and price metrics, $0.30 represents upside of around 250% from today's price.
For TRX to reach this level, key factors like Bitcoin reclaiming $60,000+ and altcoins rallying strongly will need to happen. Additionally, TRON must continue executing by onboarding more users and DeFi activity.
With its solid technical foundations and real-world usage, a 2-3x gain for TRX by late 2023 is feasible. This would require recapturing the "mania" phase of previous bull markets in crypto. While far from guaranteed, TRON seems capable of outpacing Bitcoin and the overall market again.