Tron Price Flashes a Death Cross Despite Soaring Transactions

Tron price has plunged by 25% from the year-to-date high, and the crash may worsen now that it has flashed the risky death cross pattern on the daily chart. This bearish TRX price forecast is likely to persist, despite third-party data indicating soaring transactions and active addresses on the network.

Tron Price Has Formed a Death Cross Pattern

TRX, like other cryptocurrencies, has been in a strong downward trend over the past few months as the crypto market crash intensified. This crash affected Bitcoin and altcoins across the board.

Technicals suggest that the token has more downside to go in the coming weeks. For one, it has already moved below the important support level at $0.2775, invalidating the forming double-bottom pattern. A double-bottom is one of the most common bullish reversal signs.

Worse, Tron price has flashed a death cross pattern as the 50-day Exponential Moving Average (EMA) moved below the 200-day one. This cross occurred on November 23 and was the first time it had happened since the 2022 crash.

TRX price has also formed other notable bearish patterns. For example, it has formed a descending channel, indicating that the downtrend is likely to continue. Additionally, the coin has fallen below the Supertrend indicator, while the MACD indicator remains below the zero line.

Therefore, these patterns suggest a potential downside, reaching the psychological level at $0.2500. A move below that price will indicate further downside, potentially to $0.2098, its lowest point in March of this year.

On the other hand, a move above the upper boundary of the descending channel at $0.30 will invalidate the bearish TRX price forecast and signal a potential bull run.

Tron Transactions and Active Addresses are Rising

On the positive side, third-party data show that Tron’s network is doing relatively well during this crypto bear market. According to Nansen, the number of transactions in the network is continually increasing.

The network, which Justin Sun founded, processed 311 million transactions in the last 30 days, a 40% increase. This growth made it the fourth-biggest network in terms of transactions after Solana, BNB Chain, and Base.

More data shows that the number of active addresses on Tron increased by 33% over the last 30 days to 19.9 million, indicating that it will soon surpass the 20 million milestone.

Tron is also the most profitable network, having generated $30.9 million in fees during this period, surpassing Solana’s $17.2 million and BNB Chain’s $17 million. These numbers are important as the network burns most of the fees it collects.

Tron is Facing Some Headwinds

Still, while Tron’s network is doing well, some notable headwinds may impact its price.

The first, which has affected most coins, is that the futures open interest has plummeted in the past few weeks, a sign that liquidity and performance in the futures market have declined. CoinGlass data indicates that the open interest has dropped to $227 million, down from the year-to-date high of $638 million.

The open interest was already in a downward trajectory before the October 10 liquidation event, indicating that demand had waned.

Additionally, there are signs that Tron’s growth in the stablecoin industry has largely stalled, possibly because of the ongoing crypto crash and competition from other chains. The supply has remained at $78 billion, down from the year-to-date high of over $82 billion.

Meanwhile, demand for Tron by treasury companies has dried up. A good example of this is Tron Inc., whose stock has plummeted from its year-to-date high of $ 10.80 in June to the current $1.02. This crash has brought its market capitalisation to about $482 million, meaning that it may not accelerate its purchases in the near term.