Tron investors have every reason to be cautious this crypto winter

  • Tron’s relative strength index (RSI) was overbought at press time
  • TRX’s metrics and market indicators strongly favored the bears

Throne [TRX] Price development last week was extremely slow, as it recorded negative growth. New data from CryptoQuant revealed that the coming days could be even worse, as TRX’s RSI was in an overbought position. This indicated a further decrease in the price.

At the time of writing, TRX was down more than 1% in the last 24 hours and was trade at $0.05328 with a market capitalization of more than $4.9 billion. However, TRX may be witnessing a trend change considering the latest developments.

Read Throne [TRX] Price prediction 2023-2024

Where does Tron stand?

Last week, the Dominican government gave Tron an allowance to issue Dominica’s national token. This was an optimistic update as it reflected increased use of Tron on a global scale. Justin Sun, the founder of Throne, also joined the Reuters NEXT Leadership Summit online and gave several interviews on the topic of “crypto winter.”

Still, things didn’t seem to be working in TRX’s favor on the metrics front. For example, since the beginning of this month, Tron’s total value has witnessed a fall. Furthermore, Santiment’s chart revealed several more metrics that indicated a price drop.

For example, TRX’s development activity decreased in the last week. TRX’s volume also followed a similar trajectory and fell. In addition, TRX also failed to gain interest from the derivatives market as the Binance funding rate was consistently low.

Source: Sentiment

At the mercy of the bears

Not only the metrics, but quite a few market indicators also supported the bears. TRX‘s Money Flow Index (MFI) is hovering around the overbought zone, which was a negative signal.

The 50-day exponential moving average (EMA) (red) was also significantly above the 20-day EMA (green), further increasing the chances of a downtrend. However, the Moving Average Convergence Divergence (MACD) provided some much-needed relief as it revealed that the bulls still had the upper hand in the market.

Source: TradingView

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