Tron’s price has stayed relatively constant in recent weeks, as the cryptocurrency market excitement has faded. On Monday morning, the TRX token traded for $0.12, up marginally from $0.1102 at the end of the previous month. However, it has fallen by more than 16% from its peak this year.
The value of Justin Sun’s Tron, or TRX, has decreased since March, similar to the experience of many other well-known cryptocurrencies, including Solana, Bitcoin, Ethereum, and Avalanche. This decline coincided with a decline in the value of U.S. stocks over the previous few weeks, including the Dow Jones, Nasdaq 100, and S&P 500.
The primary driver for the sell-off is the growing possibility that the Federal Reserve would not cut interest rates as soon as widely expected. Earlier this year, the Fed was projected to make three to four rate cuts beginning in March.
However, recent indications suggest that the Fed may not decrease interest rates after all. According to data released on Friday, the economy added more than 300,000 jobs as the unemployment rate fell to 3.8%.
During the same time span, US inflation remained persistently high. The headline Consumer Price Index (CPI) is predicted to grow to 3.4% in March, according to figures released on Wednesday, as energy and service prices continue to rise.
Advertisement
There are indicators that the US inflation decline has stalled this year, as it has regularly remained above 3%. Analysts estimate that the first rate cut will come in July of this year. Some experts predict the Fed may not decrease interest rates at all.
Nonetheless, the Tron network has done well this year. According to data, the platform has about $9.2 billion in locked-in value thanks to JustLend, JustStables, and stUSDT.
Tron’s network expenditures in the last 24 hours surpassed $14 million, while volume grew to $12.3 million. According to TokenTerminal, Tron’s fees for this year have exceeded $406 million, making it the next-best performer behind Ethereum.
The main difficulty for Tron is that its ecosystem has grown slowly. There are very few new developers who have joined the network. In contrast, Solana has established itself as a prominent participant in crucial sectors such as DEX and meme currency.
TRX token prices peaked at $0.14470 in March but have since plummeted below $0.12. This represents an 18% reduction, indicating that it is in a correction phase. Weighted Moving Averages (WMA) for Tron’s 100-day and 50-day periods indicate a negative trend, with the short-term average crossing below the long-term average.
Advertisement
In the meantime, the momentum of price movements is measured by the Relative Strength Index (RSI), which has increased from a low of 18 to 47.
This suggests that the selling tide has reduced a little. In addition, a bullish pennant pattern is forming, which frequently indicates that the decline may continue.
