Tron crypto price continued its strong bull run this week, reaching its highest point since December last year. The TRX token jumped to a high of $0.3165, up by 50% from the year-to-date low.
Tron token has more upside in the coming weeks as its staking inflow jumps, and after SRM Entertainment changed its name to Tron. It also has strong technicals, which may help it keep surging.
Tron Crypto Price Technical Analysis
The daily timeframe shows that the TRX price has been in a slow uptrend in the past few months. This rally started after it bottomed at $0.20 in March this year.
The upside is being supported by the 50-day and 100-day Exponential Moving Averages (EMA). The MACD indicator has remained above the zero line, while the Relative Strength Index (RSI) has crossed the overbought point at 70. These are signs that it is gaining momentum.
It has also formed a cup-and-handle pattern whose upper side is at $0.2936 and lower side is at $0.20.
Its depth is approximately 28.7%. Measuring the same distance from the cup’s upper side gives it a target at $0.3773. A move above that level will point to more gains, potentially to the last November high of $0.4483, which is about 40% above the current level.
On the flip side, a drop below the support at $0.2936, the cup’s upper side, will invalidate the bullish view and point to more downside.
Also Read: Should You Buy MSTR Stock Now? Breakout Targets $540
Tron Staking Inflows are Soaring
A potential catalyst for the Tron price is that its staking inflows have continued soaring. StakingRewards data shows that Tron has a staking market capitalization of over $13.27 billion, up by almost 20% in the last 30 days. This gives it a stake ratio of 44$, a 2.65% increase in the same period.
Tron’s staking pools have added over 1 billion tokens worth over $334 million. Rising staking inflows are a sign of high demand from retail and institutional investors.
More demand is also coming from SRM Entertainment, a toy retailer that rebranded into Tron Inc. this week. As part of this transaction, SRM is aiming to become a large holder of TRX tokens. It already holds over 365 million TRX tokens and has raised $210 million to continue this accumulation.
Tron is a Large Stablecoin Player
The TRX price will surge as Tron has become a major player in the booming stablecoin industry. Its stablecoin supply has jumped by 3.5% in the last 30 days to $81.9 billion, making it second only to Ethereum.
Tron’s stablecoin transactions jumped by 2.7% in the last 30 days to 69.2 million. Its adjusted transaction volume soared by 2% to $625 billion, while the number of addresses has jumped to 10 million.
This transaction growth has made Tron the most profitable blockchain in the crypto industry. TokenTerminal data shows that Tron has generated over $3.3 billion in the last 365 days, surpassing Ethereum’s $776 million and Solana’s $411 million.
Tron uses these funds to burn the TRX token over time, making it one of the most deflationary tokens. There are now 94.5 million TRX tokens in circulation, down from 97 million in the same period last year.
Summary
The Tron crypto price has jumped in the past few weeks, and technicals and fundamentals indicate more gains this year. It has formed a cup-and-handle pattern, is above all moving averages, and has strong momentum.
Tron token is also benefiting from the ongoing staking demand and purchases from Tron Inc. It also makes substantial sums of money and incinerates millions of tokens each day.
