Tron (TRX) Records Highest Number of Transactions, But Price Remains in a Corrective Phase

Tron [TRX] has experienced a sustained decline over the past two weeks. Since reaching a high of $0.45, the altcoin has continued to decline, hitting a low of  $0.24.

Tron [TRX] price has experienced a sustained decline over the past two weeks. Since reaching a high of $0.45, the altcoin has continued to slide, hitting a low of $0.24. At the time of writing, TRX was trading at $0.2643, showing a 3.11% decrease on daily charts. It has also dropped by 10.29% on weekly charts.

However, despite the recent decline, Tron has made positive strides in other areas, especially in the number of transactions. According to Cryptoquant, Tron has recorded the highest number of transactions, surpassing all blockchains.

Tron’s record transactions

In his analysis, Cryptoquant analyst CrazzyBlockk observed that Tron has reached the highest number of transactions for the last 3 consecutive months.

In the last three months, Tron outperformed other cryptocurrencies based on monthly transaction volume. It recorded 182 million, 167 million, and 135 million transactions in October, November, and December, respectively.

This surge in transactions arises as the popularity of Telegram-based games declines, especially on the Ton network. With Ton’s influence dwindling, Tron is filling the space. Consequently, the coin’s blockchain has seen a significant movement of USDT.

The growth of USDT on the Tron network is mostly driven by its use in crypto trading and other transactions.

Implications on TRX’s price charts?

While Tron’s number of transactions spiked over the past month, the past 2 weeks have seen strong bearish sentiment. As such, the rise in the transactions across the blockchains has failed to positively impact TRX prices.

AMBCrypto observed the prevailing market sentiment through a bearish crossover on Stoch over the past 24 hours. This bearish crossover suggests that sellers are highly active in the market, and downward momentum is building.

This downward momentum is further strengthened as the RVGI is closing in on making a bearish crossover. Another bearish crossover will confirm the downtrend.

Moreover, Tron’s netflows across aggregated exchanges showed that there’s more inflow into exchanges than outflows. With more tokens transferred into exchanges, it implies that investors are either selling or preparing to sell.

This phenomenon is also prevalent among large holders’ netflows, which have dropped to -168.55 million. This drop shows that whales are sending more capital out of the assets than the inflow.

Although Tron’s number of transactions has surpassed other cryptocurrencies, TRX remains in a corrective phase. With sentiment remaining negative, TRX could decline further. If these conditions continue, TRX might drop to $0.24. However, if increased transactions positively reflect on the altcoin’s price charts, Tron could reclaim the $0.304 resistance level.