Tron Network’s Significant Upgrade on July 11
Tron is a blockchain-based platform for sharing entertainment content, which has gained immense popularity in recent years, with millions of users and billions of transactions. Tron allows content creators to produce apps and content without relying on centralized services, posing a challenge to the media sector, including internet giants like Netflix and Amazon.
Tron also enables creators to sell directly to consumers, which benefits both parties. The cryptocurrency behind the Tron blockchain is called Tronix (TRX), which can be used to pay for access to content and applications.
On July 11, the Tron (TRX) network underwent a major upgrade. According to the Tron team, the new Stake 2.0 mechanism offers users more flexibility in staking and unstaking resources, allowing them to customize lockup periods based on individual preferences.
Interoperability as a Crucial Factor
Tron’s compatibility with Ethereum’s EIP-3855 facilitates seamless integration between the two ecosystems, attracting more developers to TRON while reducing migration costs for projects on both chains.
Furthermore, the optimized smart contract interface enables developers to easily estimate transaction fees for deploying contracts, simplifying the process of developing smart contracts.
Additionally, the enhanced P2P network module improves Tron’s connection efficiency, scalability, availability, and transmission efficiency.
Network Activity Surge as a Positive Indicator for TRX
The Tron network currently has over 169 million users worldwide and boasts a robust ecosystem that includes NFTs, DeFi, GameFi, stablecoins, the metaverse, and cross-chain solutions.
The project’s popularity continues to rise, and TRON’s founder, Justin Sun, has stressed the importance of driving the growth of the TRON ecosystem to attract more users to the platform.
Sun also mentioned that the recent upgrade provides significant improvements, which are expected to encourage more participation on the network, attract additional developers, and foster ecosystem growth.
In recent weeks, the number of transactions has surged, which typically signals that investors are becoming more confident in the short-term price prospects of TRX.
On-chain metrics such as transaction volumes and unique addresses are important to track, and in the first three days of July 2023 alone, over 20 million transactions were recorded on the TRON network. Many analysts see the growing network activity as a positive indicator for TRX, signaling potential further growth.
TRX Technical Analysis Overview
Since June 10, Tron (TRX) has shown positive performance, climbing from $0.064 to $0.080. The current price of TRX stands at $0.077. As long as the price remains above $0.070, we can’t suggest a trend reversal, indicating that the price remains in a favorable buying zone.
Key Support and Resistance Zones for TRX
On the provided chart (from December 2022), I’ve marked key support and resistance levels, which can guide traders in predicting price movement. While Tron (TRX) has seen a recent decline, should the price surpass resistance at $0.085, the next target would be resistance at $0.090.
The current support level stands at $0.075. A breach of this level could trigger a “SELL” signal, opening the way for a decline towards $0.070. A drop below $0.070—an important psychological support—may lead to the next target of $0.065.
Reasons Behind the Potential Rise of TRX Price
The recent upgrade to the Tron network on July 11, along with a significant increase in transactions in the past few weeks, has helped boost investor confidence in TRX’s short-term prospects.
The uptick in network activity is a strong positive indicator for TRX, with the potential for continued growth. However, it’s important to note that the broader cryptocurrency market sentiment plays a critical role in influencing TRX’s price movements.
TRX’s ability to maintain support above $0.070 is an encouraging sign, potentially providing a solid foundation for a price rebound. A push above $0.080 would further benefit the bulls, reinforcing control over price action.
Warning Signs of TRX Price Decline
Although TRON (TRX) has followed a positive trend recently and has managed to maintain this momentum despite some correction, a cautious investment approach is advised due to the uncertain macroeconomic environment.
The crucial support level for TRX remains at $0.070. If the price falls below this threshold, the next target could be $0.065. Additionally, TRX is highly correlated with Bitcoin’s price, so if Bitcoin falls below the $28,000 level, it could negatively affect TRX as well.
Inzichten van analisten en experts
The recent upgrade significantly enhances the Tron Network, offering users and developers greater flexibility, compatibility, and efficiency. The positive momentum since June 10 is also notable, with over 20 million transactions recorded on the TRON network in the first three days of July 2023 alone.
Experts suggest that the rising network activity is a positive sign for TRX, but caution that broader market sentiment will heavily influence its price trajectory.
The good news for the cryptocurrency market is that the latest data from the U.S. indicates inflation has cooled more than expected in June, raising investor confidence and offering hope that the Federal Reserve might ease its rate hikes.
Disclaimer: Cryptocurrency is highly volatile and may not be suitable for all investors. Only invest funds you can afford to lose. The information on this website is for educational purposes only and should not be considered as financial or investment advice.
