Tron Price Stabilizes, But the Number of Active Wallets Falls
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
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.
(Featured image by Traxer via Unsplash)
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in CRYPTOMONDAY, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
Vall d’Hebron Invests 50 Million in Projects Against Stroke and Nuclear Medicine
Vall d'Hebron is one of the main public hospitals in Spain. The center received 1.1 million outpatient visits (115,422 more...
Marrakech-Agadir High-Speed Line: ONCF Launches the APS Studies
For ONCF, this line must be designed so that its performance and safety level are globally at least equivalent to...
The TopRanked.io Weekly Digest: What’s Hot in Affiliate Marketing [Week 13]
When in doubt, we at TopRanked prefer optimism. But when it's week 13 and the world's screaming AI FUD, maybe...
Pampa Hemp Introduces First Medical Cannabis Seed Developed and Produced in Argentina
Argentina has been developing its cannabis production chain in recent years, promoting medical and scientific research on the medicinal use...
Paraguayan Chamber of Fintech Supports Controls on Illegal Crypto Mining
By the end of 2022, a special price was defined for the intensive consumption group. In that set, they included...
Featured6 days ago
Markets Bobbled Last Week but Appear Poised to Move Lower
Featured2 weeks ago
Volatility in the Stock Markets Is Never a Good Sign
Crowdfunding3 days ago
New Real Estate Equity Crowdfunding Portal Yeldo Crowd Was Launched
Biotech2 weeks ago
AstraZeneca Increases Its Commitment to Spain with More Investments