Tron: Current TRX analysis to predict the rest of 2022
Listen to this article
Tron (TRX) traded at a five-day high of $0.06383 on Nov. 15 following a recent increase in overall market price. 5 According to CoinMarketCap data. The cryptocurrency is ranked 15th by market capitalization. Additionally, TRX is down 1.5% over the past 24 hours and is priced at $0.06352 at press time.
A look at the asset on the daily chart shows that TRX buyers took control of the market on Nov. 15. This is derived from the position of the Directional Movement Index (DMI). The DMI shows a buyer (green) strength of 27.8 which is much higher than a seller (red) strength of 13.9.
This is further confirmed by the position of the Exponential Moving Average (EMA). At the time of writing, the 20 EMA (blue) is slightly above the 50 EMA (yellow), indicating that buyers are forcing sellers to lose control of the market.
Additionally, key indicators such as the Relative Strength Index (RSI) and the Money Flow Index (MFI) are above their respective neutral zones during an uptrend. On November 5, TRX's RSI was 57, while its MFI was 57. This shows that buying pressure on the coin is steadily increasing.
TRX in Q4
Cryptocurrency research platform Messari has published a review of the Q3 performance of the TRON network. The network usage was erratic, while their quarterly revenue dropped within three months.
Although the number of new accounts activated on Tron decreased by 21.6% last quarter, Messari found that daily active accounts on the network remained stable. In addition, this index also increased by 0.3% over the same period. Messari compares Tron's Q3 network usage with Q2,
"On average, total account activity appears to be steady at around 2.62 million per day. The 2.62 million daily average in Q3 is not based on an uptrend or usage boom in Q2. Daily activity in Q3 was relatively stable Q2 performance It was a period of high growth, mainly thanks to the breakout in May, following the launch of the decentralized and collateralized stablecoin USDD level of TRON."
Looking at network revenue, Messari fell 21% in the quarter. Tron's total quarterly revenue for the period under review was $38 million. In Q2, the figure was $48 million. As for the reason for the drop in revenue, Messari said it was due to "average transaction fees on the network falling by 33%".
While most L1 blockchains have suffered from the drop in DeFi TVL, Messari found that “Tron has managed to insulate itself from adverse market conditions by increasing TVL by 61% per month.”
Nov 06, 2022