Tron [TRX] has been among the market’s most stable altcoins lately, despite the often bearish market structure. In fact, TRX’s price has been on a constant uptrend since 2021 with normal corrections.
Its network activity has been surging too, alongside the accumulation trend from Tron Inc. [Nasdaq: TRON] treasury.
Identifying the surge in network activity
Active addresses, transactions, stablecoin market cap, and revenue on the TRON Network have been increasing over the past month.
According to DefiLlama, the number of active addresses hit 76.09 million in April, up from 51.86 million. This was equivalent to a 46.72% hike since March.
Additionally, the number of transactions grew by 53.76% during the same period, with the number rising from 189.16 million to 290.85 million.
Data also showed fundamentals getting stronger month by month, though the price action did not reflect the same. Historically, an increase in users and activity have preceded bull runs.
Tron Inc.’s treasury buying trend
In terms of capital deployment into the altcoin, Tron Inc. bought about 154K TRX from the HTX exchange. This amount was worth about $50K, bringing the company’s total holdings to $225 million.
The company has been purchasing an average of $50K worth of TRX for the last three months.
As per the company, they have been aiming to enhance long-term shareholder value. This development means that the accumulation trend might not be stopping any time soon.
This capital has been pushing the prices higher, having been trending since the low of $0.2690 on 09 February.
TRX eyeing to flip Ichimoku Cloud into support
On the hourly charts, TRX’s price has been rallying higher since losing support at $0.3226. The reclaiming of this level rendered the breakdown a fake-out.
TRX has, however, continued to consolidate between $0.3226 and $0.3246. An attempt to break above this range was met with a rejection as TRX’s price formed a double top at $0.3260.
Strong network activity alongside a consistent accumulation trend from the Nasdaq-listed firm indicated bullishness. This suggested that TRX’s price may flip the Ichimoku Cloud, turning it into support. However, bears seemed to be rejecting this projection at press time.
The market structure of TRX was bearish on this timeframe as seller volume increased. The On-Balance Volume (OBV) was at 1.45 billion and declining further.
Overall, while TRON has exhibited bullish tendencies in its on-chain activity, its price action appeared to be undergoing a short-term correction. The decline was after hitting last week’s high of $0.3365.
Therefore, as daily candles consolidate around $0.3232, the correction may be ending. A break below $0.32, on the other hand, may extend the correction period.
Final Summary
- TRON’s network activity surged as active addresses grew 46% while transactions hiked by 53%.
- TRX’s price was in the middle of a short-term correction, which could end if the price holds above the $0.32-level.
