Tron Price Analysis: Bulls Look to Rally Behind Huge Spike in DApp Usage and Volumes

  • TRX/USD is stuck within the confinements of a descending wedge pattern, but a breakout remains eyed.
  • Transaction volume and users of Tron DApps surge, largely outperforming competitors Ethereum and EOS. 

TRX/USD: Recent Price Behavior

The Tron price has been consistently falling since 24th February, having dropped as much as 16% following the initial steep fall. TRX/USD continues to flirt around the lowest levels since mid-January of this year. Bears have been in decent control ever since they forced a breach of a critical ascending trend line of support. The breakout was observed on 11th February and then retested and rejected on 24th February.

Tron DApps See Large Surge in Transaction Volume

In the latest weekly data provided by RatingDapp,Tron’s transaction volume surged. The weekly data provide insights into DApp statistics and market analytics for 1,890 decentralized applications.

For the week of March 3-9, Tron DApps saw a massive 207% rise in transaction volume. Tron’s weekly transaction volume equalled a whopping $180 million, nearly doubling EOS (EOS) $102 million and easily surpassing Ethereum (ETH) at $24 million.

According to another analytics platform, DappReview, decentralized apps running on the Tron network saw growth of 64% in new users, which were seen at around 33,000 last week. Once again this growth outpaced peers Ethereum and EOS.

All the above described follows Tron recently surpassing the 2 million user accounts mark on their mainnet. It was an exponential increase in users, considering it only took 181 days to reach the first 1 million users, to then follow only 68 days on achieving the next 1 million users.

Technical Review – TRX/USD

TRX/USD daily chart.

Given the recent price cooling for TRX/USD, it has formed a descending wedge pattern formation. The structure of this has been taking shape since 18th February, driving the price south. TRX is narrowing considerably within and respecting the confinements for now; however, a breakout appears to be imminent.

Immediate resistance is observed at the upper acting trend line of the mentioned pattern, $0.023500. The noted level is also a prior acting daily support, which would now likely act as a new resistance level. Should the bulls manage to break above this level, then a wave of buying pressure could probably follow. Eyes will be on a retest of the big $0.03000 price territory, where TRX/USD peaked at the start of the year.

In terms of support, this is seen at the lower acting trend line of the wedge, $0.021500. This is another critical daily support level. If this fails to hold, then a fast move below the $0.02000 mark could likely be seen in no time.

Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Ken has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.