Tron price prediction: where technicals meet good fundamentals

Tron price continued its strong downtrend this year, reaching a low of $0.2270, its lowest level since December 13. TRX has dropped by almost 50% from its highest level in 2024, bringing its market cap to over $19 billion. So, is it safe to buy the TRX token dip helped by its strong fundamentals?

TRX has great fundamentals

Tron has some of the most important fundamentals in the crypto industry. First, it has become the most popular network for stablecoin transactions as the amount of money in its network jumped. 

According to TronScan, the Tether (USDT) trading volume in its network dropped by 48% on Sunday to over $55 billion. This decline was mostly because stablecoin transactions drop during the weekend. On most weekdays, the volume tends to be in the $100 billion range, making it the industry's most active payment processing network. 

Further data shows that there are over 59 million Tether holders in Tron’s ecosystem as the number of transfer count rose to over 2.25 billion. 

This is notable since Tether is the most popular stablecoin in the world. Also, Tether has become the most profitable network in the industry, with over $2.7 billion in revenue in the last 12 months. 

The other notable catalyst for Tron is that it is one of the most deflationary projects in the crypto industry. Data shows that the number of Tron in circulation has crashed to over 86 billion, down from over 101 billion in 2022.

Tron has also continued to burn TRX tokens. It has burned 14 billion TRX tokens worth over $1.3 billion. 1 billion tokens were burned on Independence Day in 2018, while 9 billion tokens were transferred to USDD minting contracts. 

Meanwhile, the total staked tokens have soared to over 43.80 billion, which continued soaring in the past few months. A combination of rising fees and falling token count has led to a big increase in staking reward. Tron has a staking yield of 4.52% as its staking ratio has jumped to over $9.3 billion.

Tron’s ecosystem has continued to boom as its total value locked rose to over $6.8 billion, and the bridged TVL moved to over $66.18 billion. The total fees in the Tron ecosystem has continued rising as the volume rose to over $748 million.

Tron’s fees have risen sharply in the past few months, with the total fees jumping to over $2.21 billion in the last 12 months and over $1.39 billion in the last 180 days. This makes it the second most profitable network in the crypto industry after Tether. 

Justin Sun believes that the network will continue doing well as it becomes a top chain in the artificial intelligence (AI) industry.

Tron price prediction

The daily chart shows that the TRX token price has been in a strong downtrend in the past few months. It dropped from last year’s high of $0.4495 to $0.2270, its lowest point in months. 

Tron has moved below the 50-day and 100-day Weighted Moving Averages (WMA). The Relative Strength Index (RSI) has moved below the neutral point at 50, while the MACD indicator has moved below the zero line.

Therefore, the token will likely continue falling as traders target the key support at $0.1860, its lowest point on November 26. This price is about 18.2% below the current level. A move above the 50 and 100 WMA at $0.2500 will invalidate the bearish view.