Tron [TRX] Positioned for Potential Gains Amid Rising On-Chain Activity and Stablecoin Demand

TRX aims to reclaim new levels for the first time in a year, showing signs of potential breakout as market dynamics shift.

• TRX saw a major surge in on-chain activity, led by rising stablecoin supply and strong liquidity inflows into protocols.

• Tron could rally freely toward $0.30, with minimal resistance ahead until the 9th of December price level.

Tron (TRX) shows signs of significant market momentum, driven by increased transaction activity and liquidity inflows, hinting at a bullish future.

What will drive growth in TRX?

A recent report from CryptoQuant highlights that TRX is well-positioned to extend its gains based on transaction activity.

The 30-day moving average for Daily Transactions has nearly doubled, rising from 4.3 million to 8.4 million.

Source: CryptoQuant

This growth suggests increasing adoption of the chain and, consequently, heightened usage of TRX. However, a confirmed price move is yet to be guaranteed.

To evaluate if this activity will significantly affect TRX, COINOTAG has analyzed user behavior across various protocols.

High liquidity inflow and retention

COINOTAG examined the Total Value Locked (TVL), which measures the valuation of protocols on TRX by tracking how much of the asset users have deposited.

Findings reveal that TVL surged notably over the past 22 days, increasing from $5.19 billion to $6.824 billion since May 1st.

Source: DeFiLlama

This implies that $1.634 billion worth of TRX has been added and locked in these protocols, signifying a long-term commitment by investors.

Simultaneously, the Stablecoin Supply on Tron reached a record high of $76.189 billion, as reported by Artemis data.

This growing demand and utilization of Tron and its stablecoins can be directly correlated to the blockchain’s fast transaction speeds and low fees.

Together, these inflows indicate sticky capital as opposed to transient speculation, hinting at sustained interest.

What will be the effect on TRX?

A recent analysis of TRX’s 4-hour chart shows the asset is trading within a symmetrical triangle, a classic bullish pattern.

A rally will be confirmed upon breaching the upper resistance line of this pattern, which is currently being tested.

Source: TradingView

Ideally, the rally should target $0.2801, the peak of this pattern, but emerging insights reveal further upside could be possible.

According to the Global In and Out of the Money (GIOM) metric, there’s no significant resistance ahead for TRX until reaching the $0.30 mark.

Source: IntoTheBlock

At that level, TRX may encounter significant supply pressure, as 8.54 billion TRX—valued at approximately $2.3 billion—could potentially be sold, which may hinder upward price movement.

Currently, TRX maintains a projected increase of 10.11%, aiming for a new high of $0.30, a level not seen since December 9th.

Conclusion

In summary, TRX’s recent bullish trends, amplified by rising transaction activity and liquidity inflows, indicate a potentially favorable outlook if momentum continues. Strong market fundamentals could support TRX in overcoming upcoming resistance levels.