As Ethereum, Solana, Avalanche retreat, Tron (TRX) just surged to 2021 highs

As Ethereum, Solana, Avalanche retreat, Tron (TRX) just surged to 2021 highs
фото показано с : invezz.com

2024-2-5 03:02

The crypto fear and greed index has pulled back from the extreme greed levels it was a while back to the neutral point as most coins have pulled back recently. Bitcoin is still stuck at the $43,000 level while popular tokens like Ethereum (ETH), Solana (SOL), and Avalanche (AVAX) have all pulled back by over 10% from their YTD highs.

Tron price rally gains steam

Tron, the cryptocurrency created by Justin Sun, has lost its correlation with other coins like Bitcoin and Ethereum. A good example of this is the fact that Tron started its uptrend in June 2021 and has risen by 155% since then. It reacted mildly to the collapse of key cryptocurrencies like Terra and Celsius and the collapse of FTX in 2022.

Bitcoin and other cryptocurrencies started the recent bull run in 2023 when Bitcoin plunged to $15,500 after the collapse of FTX. This price action is likely because Tron has grown its utility in the past few years.

For one, Tron has become the second-biggest blockchain network in the world after Ethereum. Data by DeFi Llama shows that Tron has grown its Total Value Locked (TVL) to over $7.9 billion. Most of this TVL is in JustLend, which is Tron’s equivalent to AAVE and Compound. JustLend is the fourth-biggest DeFi platform in the world after Lido, Maker, and AAVE.

Tron has also jumped because of its role in the stablecoin industry. Data shows that Tron holds over $51 billion in stablecoins, most of them being Tether’s (USDT). This is notable since stablecoins are the currencies that people use to interact with the crypto industry. Ethereum has over $69 billion. 

Further, data shows that Tron is one of the most profitable networks in the crypto industry. Tron has made over $575 million in revenues in the past 180 days, making it the third most profitable platforms in the crypto industry after Ethereum and Bitcoin.

The only caveat to remember when investing in Tron is that Justin Sun has been accused by US authorities of conducting significant wash trading. This is notable since Sun is one of the richest people in crypto and also has a stake in several exchanges.

Tron price forecast

TRX chart by TradingView

The weekly chart shows that the TRX token price has been in a strong bullish trend in the past few months. It has moved above the key resistance point at $0.1127, its highest point on November 6th. The coin has remained above the 50-week and 25-week moving averages while the Relative Strength Index (RSI) has moved to the overbought of 70.

Therefore, the outlook for the coin is still bullish, with the next point to watch being the psychological point at $0.15. This price is about 26% above the current level.

The post As Ethereum, Solana, Avalanche retreat, Tron (TRX) just surged to 2021 highs appeared first on Invezz

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