Tron network’s native token TRX was among the best crypto to hold during the recent market slump. Moreover, the altcoin appears to hold steady regardless of the unstable market conditions. Let us find more.
TRX witnessed a massive rally from April’s second week as the broad market suffered a bloodbath amid a bearish attack. Tron surged ahead of its stablecoin, USDD, launch in May’s first week. Surprisingly, the alternative token saw bearish shockwaves when TerraUSD (UST) tumbled, but TRX seemed to caution against the fall.
TRX rallied to $0.092 on May 8 before slumping towards the $0.063 lows on May 12 as the broad market saw turmoil. However, TRX still exhibits an impressive premium considering its lowest levels in April, despite most large-cap assets plunging to hit 2021 lows. While publishing this content, Tron traded near $0.074, gaining 4.63% over the past day.
Tron’s technical indicators remain strong regardless of the alt currently hovering with an 18% loss from the May 8 high. Its Relative Strength Index stayed inside the neutral territory, despite the MFI depicting substantial outflows. The Money Flow Index displays uncertainty as far as directional momentum is concerned, but bears appear to win at the moment.
USDD’s Impact on Tron’s Performance
Increasing USDD volumes might have bolstered TRX to hold its grounds. Some market players favoring decentralized stablecoins joined USDD, translating to a volume increase. Meanwhile, the stablecoin saw a 133% 24hr surge at this publication. The volume plus stablecoin demand also influenced Tron’s demand and supply during the phase.
Though the 24hr increase, the whales’ supply metric declined over the past three days. The metric currently explores 4-week lows, but TRX’s market capitalization increased, supporting the price increase. Also, Santiment shows on-chain volumes leveled out following the massive surges over the USDD launch week.
Tron’s surging market capitalization presents a lucrative signal amid the prevailing conditions in the crypto space. Nevertheless, institutions and whales are yet to start buying after the price dip, reflecting caution as they wait for sell-off tendencies to fade. Enthusiasts should watch for more declines which would mean further downside or an upsurge that signals more recovery by TRX bulls.
James Thompson