USDT Minting Surge on TRON Raises Questions About TRX Price Stability and Market Sentiment

• The recent surge in USDT minting on the TRON network suggests a potential shift in market dynamics, despite TRX’s price remaining stagnant.

• Over the past week, USDT minting has approached an all-time high, indicating increased demand for stablecoins, though activity among major investors dwindles.

• “The price of TRX might not hold strong for long,” noted analysts from COINOTAG, emphasizing the lack of buying interest from whale and retail investors.

USDT minting on TRON has surged along with network adoption, but poor investor activity raises concerns about TRX’s price stability.

USDT minting on TRON surges — What’s next?

The minting activity of USDT on the TRON network has soared recently, with an impressive addition of $1 billion to its total supply, which now stands at $61.7 billion. This surge is indicated by a rising trend in the corresponding minting chart on platforms like CryptoQuant.

This growth in USDT supply potentially reflects a robust demand for stablecoins, pointing towards heightened market activity. The upward trend in USDT may also signal strategic allocations by retail participants and whales looking for stable assets amidst market volatility.

Source: CryptoQuant

Whale and retail investor activity declines

Despite a surge in TRX addresses—which recently surpassed 124.34 million—the lack of corresponding price movement signals underlying issues. This increase in addresses typically reflects growing network adoption; however, the price has been in a corrective mode.

The reduction in activity from key market participants, particularly retail investors and whales, is concerning. According to data from IntoTheBlock, retail addresses holding between $10,000 and $100,000 experienced an 8.7% decrease in transaction activity recently, while whale accounts with holdings between $100,000 and $1 million, as well as $1 million to $10 million, saw transaction declines of 49.54% and 45.44%, respectively.

Source: IntoTheBlock

TRX on the chart — A loop

Currently, TRX is trading within a defined range between $0.2201 and $0.2547, which may precede a significant price shift. The potential targets include an upper resistance at $0.30 and a critical support level at $0.20.

An analysis of recent price action indicates TRX has just rebounded off a support level. However, trading volumes and candle formations suggest a fragile bullish momentum, indicating caution for investors looking to enter the market.

Source: TradingView

Additionally, analysis from the Parabolic SAR indicators hints at a possible bearish trend reversal, as the markers have positioned themselves above the price candles. Investors should closely monitor the support level at $0.2201 for a potential bounce-back opportunity, while vigilance is necessary if the price breaches without holding support.

Conclusion

In summary, while USDT minting on the TRON network shows signs of increased demand, the lack of investor activity from key market players raises concerns about TRX’s future price movements. Monitoring trading volumes and address activity will be essential for gauging market sentiment in the coming days.