Tron’s blockchain has regained a strong foothold in the cryptocurrency landscape, with transaction dominance climbing back to 43%. This recent surge reflects Tron’s growing popularity, especially as it now leads altcoin blockchains in transaction processing.
On October 30, TRON handled 43% of transactions across major alt-chains, processing over 230 million transactions in October alone.
This spike in activity aligns with earlier trends in 2024, reinforcing TRON’s role as a dominant platform.
However, despite Tron’s rising transaction dominance, TRX’s price has yet to fully capitalize on this momentum.
Will TRX Break Above Previous Cycle Highs?
TRX’s price chart reveals a promising Elliott Wave structure, which signals potential for further upside. TRX completed a five-wave impulse pattern followed by an A-B-C corrective phase, bottoming in a significant support zone near $0.1421.
This bottom aligned with the 100% and 161.8% Fibonacci extensions, establishing a solid base for a renewed uptrend.
Currently, TRX trades within an ascending channel, a pattern that generally indicates sustained bullish momentum. The recent uptrend brought TRX close to the channel’s upper boundary, testing the previous cycle high.
Although it met resistance, TRX’s price remains in a favorable position within the channel, suggesting buying interest and a likelihood of further gains.
The rejection at the previous cycle high didn’t completely dampen sentiment around TRX. In fact, the overall market structure indicates that TRX could gather enough momentum to challenge and surpass these highs in the near future.
If TRX maintains support at the midline of the ascending channel during any pullbacks, it could quickly regain strength and attempt a breakout.
If TRX clears the previous cycle high, it may aim for the $0.3 level, a target that would yield over 80% returns from current levels.
However, a sustained rally will depend on significant volume and continued demand, both of which could be bolstered by Tron’s expanding ecosystem and transaction dominance.
Tron’s Growing Influence in Memecoins and Liquidity Shifts
Tron’s appeal goes beyond its transaction volume; it has also become a hotspot for memecoins that compete for market dominance.
This influx of memecoins, such as the BULL and SUNDOG tokens, has attracted substantial liquidity from other networks, enhancing Tron’s market relevance.
As top TRON-based memecoins battle to outperform each other, they pull liquidity from rival chains, adding fuel to TRX’s potential rally. This has seen its DeFi ecosystem thrive in terms of value.
As more liquidity flows from other blockchains into Tron’s ecosystem, particularly from popular memecoins on the TRON blockchain, the demand for TRX could increase, providing the momentum it needs for a stronger price rally.
Investors could see new opportunities if TRX manages to clear its previous cycle highs, especially as it benefits from a steady influx of interest and activity on its blockchain.
While TRX faced initial resistance, the overall metrics support a favorable outlook. Should TRX clear its resistance, the momentum would likely lead to further gains, reinforcing its role as a key player in the evolving crypto market.
