The weekly chart shows rounded bottom patterns, forming a U when the price declines and briefly remains stable before rising again. The TRX project is becoming increasingly robust, ranking first in terms of active addresses, even above BTC, ETH, and XRP.
The Tron (TRX) blockchain has grown significantly since its launch in January 2018. Its initial price was around USD 0.002 but reached its all-time high of USD 0.231673 in just a few days.
In 2021, the value of TRX dropped from USD 0.18 to USD 0.064 and bounced back to USD 0.1293. Its price behaves like a roller coaster since it fell back to USD 0.05101 in January 2022.
TRX is trading at around USD 0.065, below the 20, 50, and 100-day EMA, indicating inconsistent movements. The weekly chart also shows rounded bottom patterns, forming a U during price declines and short stability periods before a new rise.
It will be easy to know whether TRX is at a rounded bottom when it breaks through the 0.079 resistance. That level would be the neckline of the base and an excellent time to enter.
However, the price of TRX looks quite unstable and uncertain for the long term, causing longtermists to be neutral with it. That crypto asset needs to be more competitive regarding development for long-term investors to trust it.
TRX Might Outperform Ethereum and Cardano
Beyond the above technical analysis of TRX and its roller-coaster price action, that project is becoming increasingly robust.
According to a TronDao report, it has ranked first in active addresses, even above BTC, ETH, and XRP. The low price for transactions on the Tron network has benefited from the high fees of Ethereum and the security issues of Solana.
The growth of DeFi projects on Tron has contributed to a higher number of USDT transactions than Ethereum. However, the nature of that network makes it perfect for web 3.0 development, allowing the integration of distributed storage.
The TRX Project Must Face Several Challenges
It is important to remember that the TRX project has engaged in a series of controversies. For example, Vitalik Buterin, the CEO of Ethereum, has accused it of plagiarism for copying lines from its whitepaper entirely.
However, that controversy is not as bad as the public support of Ethereum PoW (ETHW) by Justin Son, the founder of Tron. His community disapproves of that, considering it detrimental to USDD, the Tron stablecoin. To make matters worse, Son has publicly defended Luna and Terra.
Tron must also face the challenge of overcoming the position that Filecoin and Syacoin have gained. Its BitTorrent network needs a more significant boost to make that possible.
TRX is trading at around USD 0.06573 and has accumulated a 4.1% loss over the last 24 hours. While its daily trading volume is above USD 320.51 million, its market capitalization is about USD 6.04 billion, according to CoinGecko.
By Alexander Salazar
