- TRX shows signs of a local bottom, potentially signaling a trend reversal.
- Rising USDT supply on the Tron blockchain indicates increased demand and adoption.
- TRX could rise toward $0.275 or $0.40 if demand continues, but risk remains.
Tron—TRX, has faced a tough December. After a strong rally in November, the coin struggled to keep its upward momentum. In just three weeks, TRX dropped from $0.45 to $0.22. With analysts looking closely at the situation, many are wondering if the coin is approaching a local bottom. Some recent signals point to a potential trend reversal, offering hope for a recovery.
Understanding the Local Bottom
A local bottom marks the end of a downtrend. When TRX shows signs of one, a new upward trend might follow. CryptoQuant analyst Burak Kesmeci pointed out that Tron’s price heatmap plays a crucial role in these shifts. This heatmap shows key support levels that could help prevent further price declines.
During bull markets, the heatmap tracks several price trends, including the green, purple, and blue lines. The green line sits at $0.23, while purple and blue are at $0.40 and $0.49, respectively. These lines act as resistance zones, where demand surges during rallies. If TRX approaches these levels, it could indicate a strong recovery.
What’s Next for TRX?
If TRX can hold above the green line, that could signal the start of a new bull cycle. But if the price falls below this level, weakness could prevent any recovery. Despite the struggles, demand for the Tron blockchain remains strong.
USDT supply on the Tron network hit $61 billion in 2024. This marks a 28.7% increase since 2022. The rise in supply suggests greater adoption and confidence in Tron’s ecosystem. If demand continues, TRX might see more upward momentum.
Analysts believe a move to $0.275 is possible in the short term. A breakout above $0.40 could push TRX toward $0.49. However, if the trend remains bearish, TRX may fall back to $0.22. The next few weeks will be critical in determining Tron’s next move.
Crypto News Land, also abbreviated as “CNL”, is an independent media entity – we are not affiliated with any company in the blockchain and cryptocurrency industry. We aim to provide fresh and relevant content that will help build up the crypto space since we believe in its potential to impact the world for the better. All of our news sources are credible and accurate as we know it, although we do not make any warranty as to the validity of their statements as well as their motive behind it. While we make sure to double-check the veracity of information from our sources, we do not make any assurances as to the timeliness and completeness of any information in our website as provided by our sources. Moreover, we disclaim any information on our website as investment or financial advice. We encourage all visitors to do your own research and consult with an expert in the relevant subject before making any investment or trading decision.
