Tron became TVL’s second biggest series; This means celebrating TRX

  • Tron is way ahead of most of its competitor networks when it comes to TVL
  • However, TRX is facing resistance in its attempts to break above the 50-day EMA

Tron network can be considered as one of the blockchains that have managed to achieve remarkable growth so far this year. The network is on track to end 2022 on a positive growth trajectory after dethroning Binance Smart Chain to become the second largest crypto network by TVL.

Read Tronis [TRX] Price forecast 2023-2024

The total value of the recently insured Tro was over $4.39 billion, putting it just above BSC at about $260 million. This achievement places Tron second in the list after Ethereum [ETH] Which has more than 23 billion US dollars in TVL. However, this achievement says a lot about Tron’s journey, as well as the future of its parent cryptocurrency, TRX.

Tron’s higher ranking in terms of TVL can translate into higher online demand. In other words, this means that investors can have high hopes from the ecosystem. In addition, it can lead to a higher demand for TRX over time and a positive sentiment.

If this is the case, it could provide stronger demand for TRX in the long term.

But what about TRX’s short-term performance?

An analysis of TRX’s market capitalization showed that it has fallen by about $360 million over the past four days. However, this represents a slight rebound of $170 million in the last 24 hours.

Source: feeling

But could the market cap show some stability in growth over the next few days? Perhaps the weighted sentiments can tell us a thing or two about how investors feel about TRX.

A weighted sentiment gauge revealed that collective investor sentiment favored the bears over the past three days.

Tron TRX sentiment weight

Source: feeling

The lower sentiment also favored the bears and mirrored the press time watch with TRX price action. The cryptocurrency has been on an overall upward trajectory since mid-June.

However, it faced selling pressure, especially after touching the 50-day moving average. Unsurprisingly, TRX price struggled with resistance on every attempt to break above the 50-day EMA.

Tron (TRX) price action

Source: TradingView

Can the demand for TVL performance increase?

TRX’s press time forecast based on price action confirmed that the bulls were struggling. On the other hand, Tron’s growing TVL did not confirm the network’s increasingly strong position. In an ideal world, such developments should encourage positive investor sentiment.

But one can only wait and see if this will be the outcome in the next few days.

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