TRON Price Forecast: Surge in Active Addresses Amid Bullish Breakout

TRON (TRX) has shown positive momentum recently, driven by a significant increase in on-chain activity and a potential bullish breakout on price charts. While there are technical indicators suggesting caution, the rise in daily transactions and active addresses points to strong long-term sentiment. Meanwhile, Bitcoin is also exhibiting signs of impending correction despite staying above critical support levels.

Key Takeaways

TRON's Active Addresses: TRON has surpassed 2.4 million active addresses, fueling optimism about its price trajectory.
Price Levels: TRX is currently trading around $0.279, having rebounded recently from a low of $0.2668.
Technical Indicators: A bullish flag pattern is forming; confirmation of a breakout could lead TRX to $0.30.
Market Condition for Bitcoin: Bitcoin is experiencing a potential short-term correction while maintaining levels above $103,000.

TRON's Positive Momentum

TRON (TRX) is witnessing a bullish trend thanks to a notable rise in on-chain activity, which coincides with the emergence of a classic bullish breakout pattern. This combination suggests the possibility of a substantial price increase ahead.

Despite fluctuations in the market, TRON has steadfastly held above essential support levels, although upcoming technical signals reveal potential risks and opportunities. The sustained increase in daily transactions and the growing number of active addresses highlight a long-term bullish sentiment, indicating that TRON may be gearing up for a significant move.

Currently, TRX trades at around $0.279, reflecting a 2% gain over the past 24 hours. After bouncing back from a recent low of $0.2668, it remains within a narrow 7-day range of $0.2639 to $0.2822, a pattern that illustrates ongoing market indecision. Nonetheless, TRX has gained 13% this month, suggesting a broader upward trajectory.

Although TRX struggled to maintain momentum after a 2.57% intraday surge earlier in the week, a strong rebound from crucial support keeps buyers cautiously optimistic. Daily technical indicators highlight a hidden bearish divergence in the Relative Strength Index (RSI), yet the price trend appears favorable, especially above the 50-day Exponential Moving Average (EMA) at $0.2629. The bullish outlook is reinforced as the 50-, 100-, and 200-day EMAs are trending upward, providing dynamic support.

Analyzing the daily chart reveals that TRON is breaking out from a bullish flag pattern, which typically signals strong continuation moves in upward-trending markets.

TRON price

Should the ongoing daily candle close above this bullish flag, it may confirm the breakout. Resistance levels around $0.278 and $0.280 may pose challenges, but a confirmed breach could propel TRX to $0.30 or higher.

While on-chain sentiment appears mixed, data from the derivatives market indicates a decrease in open interest to $264 million and a negative funding rate of -0.0005%, suggesting an uptick in short positions. Furthermore, the long-to-short ratio stood at 0.8793, indicating that more traders are anticipating a decline in price, paving the way for a potential short squeeze if bullish momentum resumes.

Growing Network Engagement

The fundamental outlook for TRON looks increasingly positive as active addresses have hit a record high of over 2.4 million, demonstrating a steady rise in user engagement. Recent stats from CryptoQuant reveal that daily transactions on the TRON network have crossed 8 million, reflecting a 30% growth in just four months, underscoring both robust network utility and increasing demand.

With over $20 billion in stablecoin transfers each day, TRON is outperforming traditional payment processors like Visa. Valuable transaction volumes, especially from USDT, continue to dominate TRON's blockchain, achieving over $611 billion in value transfer and positioning it as the top network for stablecoin transactions worldwide.

Given its rising popularity among developers and institutions, TRON is well-equipped to attract further capital inflows, fostering ecosystem growth that could drive prices upward. Although TRX remains approximately 35% below its all-time high of $0.4313 from December 2024, analysts believe sustained on-chain strength might lead TRX to not only revisit this peak but potentially surpass it in the upcoming months.

If the bullish flag breakout is verified, TRX could target resistance levels at $0.2806, with further objectives at $0.41, $0.44, and even $0.50. Nonetheless, traders should keep a close eye on crucial support at $0.264, as failing to maintain this level could send TRX down towards $0.25 and undermine the bullish scenario.

As institutional interest continues to build and TRON remains a leader in active usage, the next weeks could prove critical in determining whether TRX embarks on its next significant rally.

Bitcoin's Market Dynamics

Meanwhile, Bitcoin shows signs of potential short-term correction despite remaining above the $103,000 mark. Analysts are scrutinizing a narrowing support zone that may trigger a significant decline if broken.

As of Thursday afternoon, Bitcoin trades at approximately $104,082, down about 1% in the last 24 hours. Market observers indicate that price movement within the $98,000 to $101,000 range will likely determine Bitcoin's ability to sustain its bullish momentum or lead to a notable pullback.

Crypto analyst DonAlt pointed to the $98,000 to $101,000 area as a critical short-term support level for Bitcoin, suggesting that any breach below it could prompt a sharp 15% price drop. Such a decline would place Bitcoin near the $90,000 level, last seen in early May.

Market behavior recently has shown a so-called “false breakout,” with Bitcoin soaring to a new all-time high of around $112,000 before correcting down into the support zone. This retreat could indicate a lack of robust follow-through from buyers and heightened selling pressure.

Another key indicator is Bitcoin's Market Value to Realized Value (MVRV) ratio, which has dipped below its 200-day moving average. Historically, such movements have preceded periods of price corrections or stagnation. The MVRV ratio compares Bitcoin's market capitalisation with the average purchase price of circulating coins, and a declining ratio suggests that the average investor is holding unrealized profits or losses, potentially affecting their willingness to sell.

Despite short-term indicators hinting at downside risks, longer timeframes still provide some comfort. DonAlt noted that both weekly and monthly Bitcoin charts maintain a bullish structure, even as the daily chart appears fragile.

Bitcoin's market dominance continues to grow, currently standing at 64.61%, suggesting that, despite the volatility, investor confidence in Bitcoin remains strong relative to other cryptocurrencies.

Traders are closely watching whether Bitcoin can remain above the $101,000 level, with sentiments divided. Some perceive the current dip as a temporary pause, while others expect a deeper correction. The convergence of chart patterns and weakening metrics, such as the MVRV ratio, has introduced uncertainty following Bitcoin’s rapid ascent to new highs.

For now, Bitcoin is holding steady above the significant $100,000 level, but traders might remain cautious until a clearer direction is established. If lower support levels fail to hold, a swift drop to around $90,000 could reset many of May's gains. Conversely, if support remains intact, the current weakness may simply represent a consolidation phase before another upward movement.