Altai the Tiger
IGNITION
streamoors
NEAR Protocol
Sui
Ethereum
Pudgy Penguins
TRON price has been in a downtrend, reflecting the general sentiment of the cryptocurrency market. However, the rising fundamentals on the chain suggest a potential bullish reversal. TRX price action has backed this.
The Layer 1 (L1) blockchain, which primarily serves as a layer for stablecoin deployment, continues to set records. The number of transactions and active addresses was at the centre of these new records for the TRON blockchain.
While fundamentals play a part in price reactions, it was unclear how the TRON price would react to these.
Impact of Record Daily Transactions On TRON Price
The first fundamental aspect to examine was the transaction count on the L1 blockchain. TRON hit a record 12.6 million transactions in one day on October 28, according to Nansen AI. This surge in activity could positively impact the TRX price in the near term.
This followed a flat number of transactions across October, with figures fluctuating between 8 million and 11 million. This record of transaction counts meant that users were embracing the chain. As a result, the TRON price is likely to rise due to this direct correlation.
These consistently high transaction counts are a testament to the widespread use of the TRON blockchain for transfers. Specifically, the chain carried the majority of USDT transfers, bolstered by bridging from Ethereum (ETH).
Interestingly, most transactions were successful, with a very low number of failures. This further demonstrated the blockchain’s efficiency in handling capital movement.
Analysis of Daily Active Addresses on TRON
The number of active addresses also reached a record second-highest spike in TRON’s history, despite struggles with the price. Since they are directly correlated, the pattern showed divergence. It’s a common tendency that has historically triggered price reversals.
CryptoQuant data indicates a significant increase in active addresses. The count jumped from 3.5 million to 6.23 million in just one day. This 1.73 million increase signals growing demand. It comes as the TRX price remains discounted compared to earlier levels.
The more challenging task was to ensure that the TRX price, which was trending upward, maintained this high demand. Demand results in investors acquiring the token, which in turn leads to price appreciation.
The potential double bottom formed by the price at the baseline of active addresses hinted at an upcoming bullish reversal. The observation was supported by the TRON price action, which was starting to gain strength.
TRON Price Reaction: Is a Reversal Looming?
On the charts, the TRX price showed early signs of a bullish reversal on the 15-minute timeframe. The altcoin formed a lower low at $0.29 after breaking below the falling wedge pattern.
This pattern was invalidated by the formation of a higher low at $0.295 and a higher high at the same price range. At first, the TRON price broke above the descending resistance but turned out to be a fake-out.
However, the subsequent price movements partially confirmed that a reversal was in progress. For TRX to turn fully bullish, it must stay above the descending trendline.
Reclaiming the $0.30 level is also crucial for confirming the breakout. This would open for a move past $0.305, confirming a complete turnaround.
In summary, the TRX price could reverse to the upside. However, there remains a risk of further breakdown. This is due to the inconsistencies that arise when deriving biases from the structure of lower timeframes.
