The price of Tron (TRX) declined at the end of February, although most cryptocurrencies were rising. Let’s look at why this bearish trend may continue at the end of March.
Indicators point to potential downturn for Tron (TRX)
It’s likely the recent bearish trend in Tron (TRX) will continue, as trend indicators suggest a decline in the altcoin’s price. Last week, the price of Tron failed to recover, impacting the overall growth of the crypto asset and its project network. It appears to be losing popularity within the community, judging by the drop in network activity. Over the past 14 days, the average number of users per week has decreased by 10%, falling from 5.79 million to 5.25 million.
Additionally, a significant portion of the TRX supply (about 1.36 billion tokens purchased in the range of $0.1165 to $0.1205) is stuck in a state of uncertainty and may return to a loss position. This is because all signs point to a potential decline that will turn the above price range into a resistance area.
Ichimoku cloud and the bearish trend
At the time of writing, Tron is trading at $0.119 after failing to break through the $0.1219 barrier. The decline seems to have been halted for now, but it could potentially continue. This is because the crypto asset, which was previously trading below the Ichimoku cloud, is now showing a confirmed downtrend as the cloud itself has turned red over the past 48 hours. This is the first such bearish signal in seven months, since August 2023, and confirms the downtrend for TRX.
Possible price scenarios
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Thus, the Tron price may continue to decline and potentially test the $0.1123 support level. On the other hand, the Ichimoku cloud is known as a leading indicator, and given the recent price recovery attempt, TRX may stabilize for a while. In this case, Tron could consolidate and continue moving sideways. A potential breakout above $0.1219 would invalidate the bearish scenario.
About Tron (TRX)
Tron is a decentralized blockchain platform that aims to create a global entertainment network. It allows content creators to sell directly to consumers, bypassing intermediaries like the Apple Store and Google Play. TRON provides users with a free and reliable platform for publishing, storing, and distributing photos, audio, videos, and other data.
Launched in 2017, this blockchain project stood out among other ICOs by not necessarily offering entirely new technical solutions. However, it benefited from utilizing proven tools like Proof-of-Stake consensus, decentralized applications, and smart contracts. This allowed the project to focus more on user interface and features.
The post Tron (TRX) Price Analysis: Will Support Hold or Will it Break? first appeared on The VR Soldier.