In the last 24 hours alone, the price of TRX, the native cryptocurrency of Tron, has risen by 70%.
Compared to last week, the price has doubled, going in a few days from less than $0.2 to almost $0.4.
What generated this sudden and significant pump?
The slow rebound of the price of Tron (TRX)
To understand what is happening to the price of Tron, it is necessary to analyze its trend over time.
TRX debuted on the crypto markets in 2017, during a full bullrun, and in 2021 it failed to reach new highs.
In fact, in January 2018 it marked a quick peak beyond $0.22, while in 2021 it failed to surpass $0.16.
During the bear-market of 2022, it plummeted to $0.05, but with a smaller percentage drop compared to that of many other altcoins.
In other words, the price of TRX tends to be less volatile in the long term compared to that of many other altcoins, with lower peaks, in percentage, and therefore also smaller drops.
Starting from 2023, the trend of Tron’s cryptocurrency in the financial markets has shown a very slow rebound, thanks to which it returned above $0.10 in November, a year after the lows of the bear-market, with a first peak at $0.14 in March of this year.
The rise
Although in April the price then fell, the decline this time was not particularly significant, so much so that it stopped just above $0.10.
This once again demonstrates how the price of TRX tends to be much less volatile than altcoins are on average, probably also thanks to real use cases.
The subsequent rise started already in August, when it managed to climb back above $0.16. That was more or less the price it had at the end of October, given that in those months it didn’t move much.
With the declaration of Trump’s victory in the USA presidential elections on November 6, the price of TRX practically did not move.
Once again it was demonstrating its relatively low volatility.
The boom of the price of Tron (TRX)
A first sign that things might be about to change came only the week after Trump’s victory, when it managed to break through the $0.17 wall that had been holding since January 2018.
At that point, the peak of 2021 had already been widely surpassed, but not yet the all-time high from almost seven years ago.
In the following days, it finally managed to surpass $0.20, even though it then essentially moved sideways around that threshold until the day before yesterday.
Monday, December 2nd, it suddenly woke up, with a spike that hadn’t been seen for more than six years on this crypto.
Not only did the price of TRX manage to break through the 0.21$ barrier on Monday, but yesterday it really took off.
It broke through several resistances in series, and in a few hours, moving first above $0.22, then also above $0.24, with a final spike that took it first above $0.28 and then also above $0.40.
The end of the boom
Today, however, it seems that this bull has come to a halt.
After reaching the all-time high of 0.44$, which is much higher than the 0.17$ of January 2018, the price has returned below 0.40$.
In these cases, it is not easy for the boom to continue for long, given that it has been extremely rapid and powerful. Spikes like these are usually generated by actual mini-speculative bubbles that burst at more or less the same speed with which they inflate.
Although it is by no means certain that $0.44 is the maximum achievable ceiling, a temporary drop due to the bursting of the mini-bubble remains absolutely possible at this point.
In reality, however, tomorrow should be the turning point, because Thursday, December 5, some important bull movement of Bitcoin is expected.
The price of Bitcoin, after having increased significantly from about $70,000 to over $99,000 in the two weeks following Trump’s victory, has stopped but left a high interest in the crypto markets.
At that point, the attention shifted to altcoins, although not all of them, and after the bull of XRP, the bull of TRX also arrived.
However, if tomorrow Bitcoin were to resume its run (something theoretically possible, although it’s unclear how probable), the focus could shift back from altcoins to Bitcoin, potentially causing the mini-bubble that formed yesterday on Tron to burst.
However, it is not absolutely certain that things will end this way, also because if Bitcoin were to restart and then stop again, there would be room for another mini-altseason, at least in theory.
