4 Key Charts Explain Why TRX Price May Jump 72%
Tron (TRX), the cryptocurrency founded by Justin Sun, has experienced a notable pullback over the past two months, losing a portion of the gains it achieved in 2024. Despite this, four critical charts suggest that TRX has the potential to bounce back and retest its 2024 highs.
Currently trading at $0.2575, TRX is down 43% from its 2024 peak, with a market capitalization of approximately $22 billion. Let’s dive into the key charts and metrics that indicate why TRX could rally by 72% in the near term.
1. Falling Wedge Pattern Indicates a Bullish Breakout
The weekly chart of TRX shows that it remains above the 50-week moving average, signaling that its long-term bullish trend is intact. Furthermore, TRX has formed a falling wedge pattern, characterized by two descending and converging trendlines. Historically, this pattern often leads to a strong bullish breakout when the lines approach confluence.
Adding to the bullish case, TRX has formed a doji candlestick pattern, which signifies indecision in the market and often precedes trend reversals. These chart patterns collectively suggest that TRX could rebound significantly in the coming weeks.
2. Tron Outshines Ethereum and Solana in Profitability
Tron has cemented its position as the most profitable layer-1 blockchain network in the crypto industry. Over the past six months, Tron generated $1.44 billion in fees, outperforming Ethereum’s $857 million and Solana’s $636 million.
For TRX holders, these profits translate into attractive staking rewards. Currently, Tron offers a staking yield of approximately 4.5%, which is notably higher than Ethereum’s 3%. This profitability and higher yield make Tron an appealing option for investors looking for steady returns.
3. Deflationary Tokenomics Drive Price Potential
A key strength of Tron is its highly deflationary supply dynamics. According to TronScan, TRX boasts an annual deflation rate of -2.83%, making it one of the most deflationary tokens in the cryptocurrency market.
The circulating supply of TRX has declined to 86.14 billion tokens, down from 88.6 billion a year ago. This deflationary trend is driven by a burn mechanism where the number of burned tokens consistently outpaces the number of newly minted tokens. For example, on a recent day, Tron burned 7.7 million tokens while generating only 5.06 million.
This decreasing supply, coupled with steady demand, creates upward pressure on TRX’s price.
4. Growing Adoption and Account Holders
The increasing number of TRX account holders is another positive indicator. Currently, over 165.17 million accounts hold TRX, up from 114 million a year ago. This growth reflects the rising adoption of Tron as a preferred blockchain network among investors and users.
Moreover, Tron processes substantial volumes of Tether (USDT), further underscoring its importance in the crypto ecosystem. For instance, Tron handled $156 billion worth of Tether transactions in a single day, representing an 18% increase from the previous day.
Key Points Supporting TRX’s Potential 72% Jump
To summarize, the following factors strengthen the case for a TRX rally:
- Technical Patterns: The falling wedge and doji candlestick patterns indicate a potential bullish breakout.
- Profitability: Tron outperforms Ethereum and Solana, generating the highest fees and offering attractive staking rewards.
- Deflationary Supply: A decreasing token supply, with an annual deflation rate of -2.83%, supports upward price momentum.
- Adoption Growth: A surge in account holders and increasing Tether transaction volumes signal growing network activity and investor confidence.
The combination of technical, fundamental, and adoption metrics strongly suggests that TRX could see a significant price increase in the near future. With a falling wedge breakout looming, robust profitability, deflationary tokenomics, and growing adoption, TRX may potentially climb by 72%, retesting its 2024 highs. Investors should monitor these trends closely as they unfold.
