The mutual support of the Tron ecosystem and the Donald Trump-backed World Liberty Financial (WLFI) protocol has significantly helped attract more organic users to the TRX-based DeFi protocols.
As Bitcoin price BTC $100 084 24h volatility: 6.4% Market cap: $2.00 T Vol. 24h: $101.03 B led the wider crypto market in a bearish outlook in the past two days, Tron TRX $0.28 24h volatility: 1.7% Market cap: $26.36 B Vol. 24h: $1.55 B , a top-tier layer one project backed by Justin Sun, dropped over 3% in the last 24 hours trade about 24 cents on Thursday, January 3, during the early New York session. The large-cap altcoin, with a fully diluted valuation of about $21 billion and a 24-hour average trading volume of about $1.2 billion, has been trapped in a correction mode since early December.
After hitting a new all-time high of about 43 cents late last month, TRX price has been forming lower highs and lower lows in the daily time frame. Nonetheless, the altcoin has performed better compared to most of the altcoins in the past two years.
As a result, TRX price is expected to lead in the highly anticipated altseason, which will kickstart after Bitcoin dominance confirms the macro reversal pattern.
Why Bet of Tron Rise in the Near Future
Notably, the rate of crypto cash rotation from Bitcoin to the altcoin industry has been slower in the past two years compared to other crypto bull cycles due to the changing regulatory landscapes.
As a result, the Tron ecosystem has been building the necessary infrastructure to enable organic mainstream adoption of its DeFi protocols by retail traders and institutional investors.
According to the latest market data, the Tron network had a total value locked of about $7.24 billion and a stablecoins market cap of about $60 billion.
However, the Tron network has been criticized due to its high transaction fees compared to its rivals such as the BSC chain, and Ethereum’s Layer Two (L2) protocols. In a bid to ensure sustainable future growth prospects, Sun announced that the core Tron developers are working on measures to ensure a zero-fee stablecoin transaction experience.
The initiative would be a major milestone amid the notable collaboration between the Tron DAO and the Donald Trump-backed World Liberty Financial (WLFI).
Midterm Expectations
From a technical analysis standpoint, TRX price has significantly reduced its falling rate, signaling a potential reversal toward a bullish continuation in the near future. Furthermore, TRX price, in the daily time frame, has rebounded twice from the 50 Moving Average (MA), signaling a robust support level.
From a bullish perspective, if the TRX price consistently closes above the resistance level of around 27 cents, a new rally above the former ATH will be imminent. The TRX bullish sentiment has a higher chance of happening backed by robust fundamentals.
On the other hand, if the TRX price consistently closes below 21 cents in the near future, the ongoing correction will be expedited towards 20 cents.
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