Tron is down more than 3% in the past 24 hours.
Some market indicators were bullish, while others suggested otherwise.
Tron [TRX], being a deflationary asset, it has always paid close attention to its burn rate, which has usually been impressive. However, concerns for investors remained, as despite the promising burn rate of the token, the price was not affected by that.
Read from Tron [TRX] Price prediction 2023-24
Tron’s burn rate is amazing
Tron has been known for its deflationary properties since its launch. Tron Community’s latest tweet mentioned the current state and said the blockchain burned over 12.7 million TRX on July 22, 2023. According to the tweet, it showed a commitment to deflation and value growth with a net negative production ratio of -7,653,235.
Separately, blockchain network metrics also remained upbeat. For example, the total number of accounts exceeded 174 million, while the total number of transactions passed the 6 billion mark. The transfer volume also remained green, indicating high usage of the blockchain.
While network metrics remained promising, key blockchain metrics declined. For example, development activity declined. A decrease in the metric means that the developers have put less effort into improving the blockchain. Aside from development activity, the token price also fell by more than 3% in the past 24 hours.
This was accompanied by a drop in trading volume. At the time of writing, Tron trade at $0.08343, with a market cap of over $7.4 billion. Despite the drop in price and volume, it was interesting to see the token’s social volume surge last week, reflecting its popularity.
Source: Sentiment
A closer look at the condition of Tron
The good news was that Tron’s open interest diminished as the price fell, indicating a trend reversal. However, one-week price volatility increased. TRX’s funding rate also turned green after falling, suggesting that it was in high demand in the derivatives market.
Source: Sentiment
Read from Tron [TRX] Price prediction 2023-24
A look at the token’s daily chart painted an ambiguous picture. For example, the Exponential Moving Average (EMA) Ribbon and MACD showed a clear bullish advantage in the market.
On the other hand, Tron’s Relative Strength Index (RSI) and Chaikin Money Flow (CMF) both registered declines. The latter two indicators increased the likelihood of a sustained downtrend, which was against investor interests. The route TRX moves will be interesting to watch.
Source: TradingView
This post Why Tron Investors Should Be Cautious Despite High Burn Rate
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