Tron Price Prediction: TRX Could Drop to $0.19 Before Rebound

Highlights:

• Tron is trending lower, driven by broader market price action
• The continued selloff puts the $0.19 multi-week support in focus
• The selloff could continue if Bitcoin loses the $92k support

Tron (TRX) is in the red today, mirroring the ongoing correction across the market. Tron was down by 5.95% when going to press to trade at $0.223. However, trading volumes were on the rise, up by 77.89% to stand at $771.01 million on the day. This shows that despite the ongoing correction, investors were still actively trading Tron. It also indicates that bulls could be taking positions ahead of a possible marketwide rebound in the short term.

Such a possibility is evident in the CoinMarketCap sentiment tracker where 82% of investors are currently bullish on Tron. The strong bullish sentiment around Tron despite the ongoing correction is not without basis. There are multiple factors that support a possible rebound for Tron.

Tron Well Positioned for Incoming Trump Presidency

The biggest one is the fact that Tron could be positioned to reap big from the Trump presidency. This is through the positioning that Tron founder Justin Sun is giving it in the US. Back in November, Justin Sun announced that Tron had invested $30 million in World Liberty Financial, a blockchain company associated with President Donald Trump. This means any favorable regulations that the Trump administration comes up with could be favorable to Tron. With Trump taking office in a few days, this investment spells good tidings ahead for Tron.

We are thrilled to invest $30 million in World Liberty Financial @worldlibertyfi as its largest investor. The U.S. is becoming the blockchain hub, and Bitcoin owes it to @realDonaldTrump! TRON is committed to making America great again and leading innovation. Let's go! pic.twitter.com/cISTsVYP1f

— H.E. Justin Sun 🍌 (@justinsuntron) November 25, 2024

Top Asset Management Fund Considering Adding Tron to Portfolio

To add to the excitement around an incoming pro-crypto administration, top crypto asset fund manager Grayscale is now considering adding Tron to its portfolio. This is a big deal for Tron in terms of drawing in institutional money. It also gives Tron a level of credibility in the eyes of new investors that many altcoins do not have. In the event of a market-wide rebound, this is a factor that could help push Tron’s price to new highs.

Tron Wallets and Fee Revenues Point to Rising Adoption

Tron also continues to grow in adoption, and this is evident in its usage numbers. For context, in the last 6 months, Tron has emerged as one of the most adopted L1s, rivaling the likes of Ethereum. In the said period, Tron Tracker indicates that Tron generated $1.36 billion in fees. These figures point to adoption in key areas such Dapps and a higher level of user engagement compared to most L1s. 

These numbers are likely to grow even further as investors adopt Tron-based meme coins. Some top meme coins that have shown Tron’s potential are SunDog and Tron Bull. These meme coins have together hit a market cap of over $100 million. Their success could inspire even more to launch on Tron and that means growing intrinsic demand for Tron tokens. Tron’s potential is collaborated by the growing number of Tron wallets that point to user interest in the Tron ecosystem.

Tron Continues to Dominate Stablecoin Trading

Tron could also derive strong growth from the stablecoin market. Stablecoins are taking a central role in finance, and Tron’s stablecoin transactions point to this growth.

Last week, on January 6, Tron recorded stablecoin transactions of more than $108 billion. This is about 38% of the total stablecoin market. Tron’s dominance on this front could help shore up TRX token prices as the broader market turns bullish.

Technical Analysis – Tron In a Selloff Despite Strong Fundamentals

Despite these strong metrics, Tron’s price charts call for caution in the short term. On the day chart, Tron appears to be in an accelerated selloff. If the selloff continues, Tron could test $0.194 in the short term.

A crash through the $0.194 support could see Tron drop to around $0.158. This scenario could play out if Bitcoin continues the selloff that has characterized its price action since last week.