Understanding the TRX scenario and what to expect in the short term

  • The proposal for a new TRON update is underway, which would increase the cost of energy
  • TRX’s weekly chart was green and metrics were in favor of a price increase

The TRON Community Twitter account recently revealed that a new update for TRON [TRX] was in progress. This will cause several changes to the network. According to the tweet, if the update is approved, the energy cost of the TRON network will be increased to $420. This change will also cause the daily burn rate to increase by eight million TRX, with an inflation rate of -3.17%.

Lily TRON [TRX] Price prediction 2023-24

As of November 28, TRON has burned over 8,483,079 coins with a sub-zero net production ratio of -3,417,095, further proving its deflationary characteristics.

Interesting way, TRXRecent price action also looked quite promising. It has given investors hope as its price has risen almost 10% over the past week. According to CoinMarketCap, at the time of writing, TRX was trade at $0.05398 with a market cap of over $4.9 billion.

Not only that, but TRON also remained very popular in the crypto industry, as it was among the top 15 coins according to Binance search trends.

Are the good days ending for TRON?

However TRXPerformance lately seemed good for the token, let’s take a look at the network’s on-chain metrics to better understand what’s going on. For example, despite the commendable rise in price, TRX volume saw a sharp decline, calling into question the legitimacy of the surge.

TRX development activity also took a southerly trajectory, which was not a positive signal. However, the token has managed to attract interest from the derivatives market; its Binance funding rate has increased in recent days.

Source: Santiment

Curiously, TRON’s NFT space did not perform well last week. After recording a spike, the total number of TRX NFT trades and the total USD NFT trade volume decreased.

Source: Santiment

Go forward

TRONThe daily chart of revealed an ambiguous story, a few indicators were supportive of further price increases. TRX’s Chaikin Money Flow (CMF) marked a strong rise, which was a positive development. The MACD also showed a bullish crossover, increasing the chances of an uptrend.

Nevertheless, although the Money Flow Index (MFI) rose, it registered a slight decline. The exponential moving average (EMA) ribbon revealed that the bears have an edge in the market, which could be troublesome for TRX in the days ahead.

Source: Trading View

Leave a Comment