TRON (TRX) Price: Maintaining Stability Despite $1.4 Billion Profit-Taking Wave
TLDR
TRX price reached $0.42, nearly doubling from February’s $0.20 low
$1.4 billion in profit-taking occurred in a single day, mostly from long-term holders
Despite massive selling pressure, support at $0.33 remains solid
Tron’s token burn mechanism has removed about 40 billion TRX to date
TRON serves as a major platform for stablecoin transactions, generating substantial fees
TRON’s native cryptocurrency TRX has maintained impressive price stability despite experiencing a massive wave of profit-taking. The digital asset recently touched $0.42, continuing its strong upward trend that began early this year. However, market data suggests that a short-term correction might be on the horizon as long-term holders begin to cash in on their gains.
TRX has barely moved in the last 24 hours but continues to attract substantial trading volume of around $920 million. This trading activity comes as realized gains for TRX reached the second-highest level year-to-date, surpassed only by Bitcoin and Ethereum.
The profit-taking has intensified over the past five days, with almost $1 billion in realized gains at the time of reporting. Glassnode data indicates that most of these profits are coming from investors who had been holding since the 2020-2021 bull market.
What’s particularly striking is how TRX has maintained its price level despite this selling pressure. The $0.33 support level has proven remarkably resilient, functioning as a strong foundation that sellers have been unable to break through.
What’s Driving TRON’s Growth
TRON’s impressive performance can be attributed to several key factors. The implementation of a token burn mechanism has been particularly effective in creating scarcity. To date, approximately 40 billion TRX have been burned, significantly reducing the total supply.
The burn rate remains consistent, with about 166 million tokens removed in August alone, representing one-tenth of July’s burn volume. The TRON Foundation has maintained this steady burning strategy since early 2023.
Beyond token burns, TRON has established itself as a major platform for stablecoin transactions. Tether’s USDT, which is predominantly issued on TRON and Ethereum, generates approximately $7.57 billion in annual fees, contributing substantially to TRON’s ecosystem value.
Justin Sun, TRON’s founder, has played a vital role in popularizing the network. His collaborations with other blockchain platforms and promotion of trending meme tokens have brought increased attention to TRON, boosting revenue for participants using the platform for transactions.
Market Indicators and Price Outlook
Despite the strong fundamentals, technical indicators suggest a potential short-term price adjustment. The MACD (Moving Average Convergence Divergence) appears to be reacting to holder activity, with momentum slightly shifting toward bearish territory.
The sentiment metrics show TRON sitting in what analysts call the “Optimism/Anxiety” zone with a SOPR (Spent Output Profit Ratio) value of 1.04. This indicates cautious optimism among investors, though the spike in profit-taking activity could impact price action in the near term.
However, not all technical signals are negative. The Stochastic RSI, currently at 40, suggests that sellers may be getting exhausted after a period of locking in gains. This indicator is approaching a neutral value, which could signal a potential reversal in selling pressure.
While TRX has been trading well above its 52-week low and approaching the $0.42 mark, the recent $1.4 billion in profit-taking by long-term holders represents a critical test of market strength.
The profit-to-loss ratio has reached 0.46, suggesting a pivotal moment for TRX’s price action. If the strong support at $0.33 continues to hold, fresh buying interest could emerge as short-term traders wait for confirmation before re-entering the market.
TRX could face a short-term price correction before potentially resuming its upward trajectory that has been in place since early February when it traded at $0.20.
The post TRON (TRX) Price: Maintaining Stability Despite $1.4 Billion Profit-Taking Wave appeared first on Blockonomi.
Filed under: Bitcoin - @ August 7, 2025 9:19 am