Tron (TRX) Maintains Momentum as Network Growth and Deflation Drive Optimism

Tron (TRX) continues its upward trajectory, trading nearly 1% higher on Thursday and extending the previous day’s 0.76% gains. While the broader cryptocurrency market remains volatile, both on-chain and derivatives data hint at a potential recovery for TRX, supported by consistent network activity and renewed retail interest.

Sustained Network Growth Strengthens Tron’s Fundamentals

Over the past 30 days, the Tron blockchain has shown stable network expansion, driven by an increase in active accounts and network revenue. According to TronScan, active accounts have averaged around 3 million in the last month. Meanwhile, total network revenue reached $8.58 million on Wednesday — a 2.35% daily increase — bringing the 30-day total to $234.55 million.

This steady revenue flow and growing user base contribute to the network’s resilience, potentially reinforcing the value of TRX in the market.

Deflationary Pressure Adds to Bullish Outlook

The Tron ecosystem is experiencing rising deflationary pressure as the burning of TRX tokens outpaces new issuance. On Tuesday, 5.18 million TRX were burned compared to 3.91 million newly generated tokens. This trend indicates tightening supply, which could fuel upward price momentum as demand remains steady.

Retail Traders Begin to Reengage

Market data suggests that retail interest in Tron may be returning after a period of caution. CoinGlass reports that TRX futures open interest declined to $340.32 million on Thursday, reflecting reduced leverage and investor risk aversion. However, the OI-weighted funding rate flipped positive to 0.073%, signaling that traders are paying a premium to maintain long positions. This growing optimism could reignite futures activity and strengthen short-term recovery prospects.

Technical Indicators Point Toward Renewed Strength

Tron remains stable above the $0.3145 support level, avoiding further correction following a weekend dip. At the time of writing, TRX trades above $0.3200, marking a second day of rebound. Momentum indicators hint at waning selling pressure: the RSI has climbed to 41 and is trending toward the neutral 50 mark, which would confirm renewed buying interest if crossed.

The MACD also edges closer to a bullish crossover, supported by fading red histogram bars that reflect diminishing bearish sentiment. A sustained rally could face resistance at the $0.3287 pivot point and later at the 50-day EMA of $0.3338. Should the price break these levels decisively, TRX could aim for the next target near $0.3596.

Outlook: Recovery Potential Balances Against Resistance

Despite encouraging momentum, the bearish slope of the 50-day and 100-day EMAs at $0.3338 and $0.3261 respectively suggests that the broader uptrend remains tentative. A drop below $0.3145 would expose the next key support at the 200-day EMA near $0.3030.

Tron’s consistent network growth, deflationary token dynamics, and signs of renewed retail participation position TRX for a potential continuation of its recovery — provided it can hold key technical levels in the days ahead.