Tron Price Stabilizes, But the Number of Active Wallets Falls

The price of Tron (TRX) has performed quite well in recent weeks, despite troubling on-chain data. In the last 24 hours, TRX increased by another 3%, so the cryptocurrency is trading at $0.07.

In the last 7 days, the price increase was almost 9%. Tron’s market capitalization is currently around $6.5 billion.

Read more about Tron and how the cryptocurrency has developed in recent weeks, and find the latest business news of the day with the Born2Invest mobile app.

Justin Sun wants to invest in artificial intelligence

The upswing in recent weeks is mainly due to Justin Sun’s recent announcement about Artificial Intelligence. In it, he said that the Tron Foundation will launch a $100 million ecosystem fund for artificial intelligence development.

The crypto billionaire hopes that Tron will become the standard blockchain for developers of AI projects. This year, it has become one of the most important topics, which also led to the sharp rise in the price of cryptocurrencies such as AGIX and FetchAI.

Many believe that AI will change the world and some of the biggest companies are already deploying it. For example, Microsoft hopes that its Bing search engine will be able to compete with Google thanks to AI. So by positioning Tron as the standard blockchain for AI, Sun hopes to capture a market share in a huge industry.

However, some analysts believe that Tron has a hard time in this sector and that Sun just wants to drive up the TRX price. The hype has already led to a sharp rise in the price of tokens such as SingularityNET, SingularityDAO, and The Graph because they supposedly work with AI. But it’s doubtful that this will really give them an edge.

Meanwhile, Tron is showing mixed on-chain metrics

There are now over 142 million TRX wallets and over 92 million holders of this coin. However, as shown below, the number of active accounts has plummeted. It reached 1.67 million, the lowest level since March 30 last year.

On a positive note, the TRX supply is on a downward trend. There are currently about 91.6 billion TRX tokens in circulation, down from more than 92 million last year. When the number of tokens in circulation decreases, it usually has a positive effect on the price.

In addition, the total value of deposits on Tron’s DeFi platforms has again overtaken that of BNB Chain. It is now $4.2 billion, and $4 billion for BNB. That equates to 74 trillion TRX tokens. Last year, it was 90 trillion TRX tokens.

Tron Price Forecast

On the chart, you can see that the TRX price slipped to a low of $0.045 in December last year. Since then, this cryptocurrency has recovered significantly – it is trading at around $0.07. Thus, Tron has moved above the Fibonacci retracement level of 38.2%.

The price has also crossed the important support at $0.0576 (September 21 low), and it is above the lines of the moving averages of the last 25 and 50 days.

Moreover, TRX has formed a rising wedge formation. Therefore, there is a probability of a price correction, with the next important support at $0.057, which is about 20% lower than the current level.

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