- 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.
The U.S. Spot Bitcoin ETFs have been reporting massive outflows lately. However, institutional investors are moving forward to embrace these funds. The most recent one is BNP Paribas, which is the second largest bank in Europe. BNP Paribas has invested in BlackRock’s iShares Bitcoin Trust (IBIT).
BNP Paribas Gets Exposure To Bitcoin Via BlackRock’s IBIT
According to the latest 13F filing, filed on Wednesday, May 1, BNP Paribas revealed investing $41,684 in the BlackRock Bitcoin ETF by purchasing 1,030 units. Though the investment is not large, it serves as a stepping stone for the bank in its pursuit of embracing Bitcoin. Moreover, the European bank boasts a massive $600 billion in the assets under management (AUM), making the development even more significant.
Furthermore, this move aligns with Bloomberg Senior ETF analyst Eric Balchunas’ prediction. Earlier this week, Balchunas took to X and countered Jim Bianco’s claims of low institutional adoption of Bitcoin ETFs. The analyst noted that several investment advisors and other institutional investors are yet to submit their 13F filings for the first quarter of 2024.
Moreover, Balchunas stated that he expects a whopping 500+ investment advisors to disclose their holdings by May 15, which is the deadline for 13F filings. Hence, the latest disclosure by BNP Paribas reaffirms that institutional adoption of Bitcoin ETFs is going to soar.
In addition, it’s worth noting that City Holding Co., a Royal Bank of Canada subsidiary with $6 billion AUM, invested in the Grayscale Bitcoin Trust (GBTC) in April. According to a 13F filing, dated April 11, 2024, the subsidiary obtained 100 units of the Grayscale Bitcoin ETF.
Also Read: US Fed Meeting Highlights: Markets Await Crucial Interest Rates Decision
Spot Bitcoin ETFs Record A Massive $563 Million Outflow
Following the recent FOMC meeting chaired by Jerome Powell, where interest rates remained unchanged, U.S. Spot Bitcoin ETFs experienced a significant surge in outflows exceeding $560 million on May 1. Moreover, the announcement contributed to a further 5% drop in the Bitcoin price, which dropped below $57,500.
According to data provided by Farside investors, Wednesday saw a notable net outflow of $563.7 million from Spot Bitcoin ETFs. Remarkably, BlackRock’s IBIT ETF witnessed its first outflow since its inception, totaling $37 million.
In addition, Fidelity’s FBTC led the outflow charge with a staggering $191 million, surpassing Grayscale’s GBTC, which recorded $167 million in outflows. For the first time, all Spot Bitcoin ETFs in the United States reported net outflows on the same day, highlighting the intensified selling pressure within the market.
Also Read: U.S. Bitcoin ETF Outflows Jump Past $560 Million, More Pain Ahead?
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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