Tron [TRX], a once-soaring cryptocurrency, has reversed most of its remarkable Q4 2024 gains. Following a 180% rally that peaked at $0.44 in early December, a holiday sell-off eroded much of its progress, leaving TRX unable to stage a robust recovery.
Since January 2025, TRX has been locked in a tight trading range between $0.22 and $0.27. This sideways price action has provided fertile ground for swing traders, who capitalize on fluctuations between these levels. However, TRX’s choppy market conditions signal a cautious sentiment ahead of next week’s Federal Open Market Committee (FOMC) meeting, which could set the tone for the broader cryptocurrency market.
From a technical perspective, TRX’s outlook remains mixed. The Chaikin Money Flow (CMF) indicator reflects low capital inflows, while the flat Relative Strength Index (RSI) suggests muted demand. These indicators hint that the $0.22–$0.27 range could remain pivotal for traders in the near term, with both buyers and sellers focusing on these levels.
Despite the lack of price momentum, Tron’s network fundamentals paint a more optimistic picture. The blockchain has seen massive growth, with the number of active users surging past 2 million. CryptoQuant analyst DarkFost attributes this to rising investor confidence, bolstered by the launch of Tron’s high-yield stablecoin, USDD 2.0.
Additionally, Tron recorded a staggering $3.6 trillion in transfers on January 15, highlighting its robust network activity. DarkFost commented, “Confidence in Tron’s growth appears well-founded as the number of active addresses continues to rise, signaling that the blockchain is successfully attracting more investors.”
In the short term, TRX’s price consolidation is likely to persist, especially given the nearly balanced liquidity levels between $0.22 and $0.26. Any liquidity sweep could trigger movements on either side of the range, making these levels critical for traders to monitor.
With strong network growth supporting its long-term potential, Tron’s ability to break out of its current sideways structure may depend on broader market dynamics and evolving investor sentiment.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Tron [TRX] Surges as On-Chain Metrics Soar and WLFi Acquisitions Fuel Bullish Momentum
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