Tron (TRX) slips below its ascending trendline, signalling a possible short-term correction.
Tron hits $600B stablecoin transfers, outpacing Ethereum in volume.
Tron network dominance contrasts with bearish indicators on the TRX price.
Tron’s native token, TRX, is at a crossroads. The cryptocurrency is flashing signs of weakness on technical charts, even as its underlying network continues to break records in stablecoin activity.
With the TRX price sliding below key trendlines and bearish indicators building, the contrast with Tron’s booming fundamentals has left traders debating whether a correction or a rally will come next.
Bearish pressure builds on TRX
TRX slipped below its ascending trendline this week, trading around $0.345 after a near 7% pullback from its yearly high at $0.370.
The breakdown marked the first decisive violation of the bullish structure that had been in place since late June.
On-chain and derivatives data echo the bearish mood. CryptoQuant’s Spot Taker CVD for TRX has been in negative territory since mid-August, signalling that sellers are in control of market flows.
At the same time, Coinglass data shows that TRX’s funding rate has turned negative, with shorts outpacing longs — a development often linked with growing downside pressure.
Momentum indicators are also leaning bearish. The Relative Strength Index (RSI) is stuck near its neutral 50 level, showing indecision, while the Moving Average Convergence Divergence (MACD) flipped into a bearish crossover on Sunday, flashing fresh sell signals.
If TRX fails to reclaim the $0.345 level on a daily close, a decline toward $0.330 remains a strong possibility.
Tron network strength paints a different picture
While technical charts point lower, Tron’s network fundamentals tell another story.
The blockchain recently processed more than $600 billion in stablecoin transfers in a single month, an unprecedented milestone that highlights its growing role as the backbone of global digital payments.
The surge in transaction activity underscores Tron’s competitive edge: low fees and fast settlement times. Users and institutions are increasingly choosing the network to move value, making it the preferred settlement layer for Tether’s USDT.
More than nine million transactions are now processed daily, with over one million unique wallets interacting with stablecoins on Tron each day.
This level of usage is not only significant compared with rivals, but it also dwarfs Ethereum in terms of stablecoin settlement.
Recent data released by Messari shows Tron commanding more than 63% of the circulating USDT supply at $81.2 billion, compared with Ethereum’s $73.8 billion.
In daily transfer volumes, Tron moves almost seven times more than Ethereum, cementing its dominance in this segment of the market.
TRX price outlook
For Tron (TRX) token holders, the current picture is mixed. On the one hand, technical indicators point to a near-term correction, with $0.330 emerging as the next downside target if sellers maintain pressure.
On the other hand, the network’s record-breaking volumes and commanding position in the stablecoin market provide a strong long-term bullish backdrop.
At $0.3478, TRX trades nearly 19% below its all-time high of $0.4313 set in December 2024.
Nevertheless, the token is still up more than 100% year-on-year, supported by steady adoption and robust transaction flows.
For now, the key level to watch remains $0.345. A sustained break below it would favour further weakness, but a recovery above could reopen the path toward $0.370.
