TRON (TRX) has been showing signs of slowing momentum after its climb near previous highs. The token is currently priced at $0.3486, reflecting a 19.2% decline from its all-time high of $0.4313 recorded late last year. Over the past week, the market has seen limited upward movement, with TRX trading in a narrow range, suggesting muted buying pressure.
On-chain analysts are closely watching TRON’s market dynamics as it approaches a potential inflection point. According to data shared on CryptoQuant’s QuickTake platform, TRX is exhibiting conditions that mirror earlier phases in its history where heightened optimism preceded corrections.
The combination of rising sentiment indicators and technical positioning has sparked debate on whether TRX is preparing for a breakout or facing increased risk of retracement.
Market Conditions and On-Chain Metrics
CryptoQuant contributor CryptoOnchain explained that TRX is at the edge of a critical zone, with “Extreme Greed” sentiment levels dominating investor behavior. Historically, such phases have led to either price discovery above resistance or sharp pullbacks when momentum fails to sustain.
The analyst noted that the gap between TRX’s spot price and its realized price has widened, indicating substantial unrealized gains in the market. This divergence often increases incentives for holders to secure profits, adding to potential selling pressure.
The on-chain data further highlights that TRX is approaching its upper value band, an area typically associated with overbought conditions. CryptoOnchain noted:
TRX is at a critical juncture: a breakout above the all-time high could lead to further upside, but there is also a real risk of a correction. Traders should proceed with caution.
To mitigate risks, strategies such as trailing stop-losses and partial profit-taking were recommended, especially given the heightened levels of speculative optimism.
Stablecoin Dominance on the TRON Network
While price performance has drawn attention, another significant factor shaping TRON’s trajectory is its growing role in stablecoin settlements. CryptoQuant analyst Burak Kesmeci recently emphasized that stablecoin transfers heavily dominate TRON’s ecosystem in 2025. Data shows:
USDT: over 383 million transfers. Wrapped TRX (WTRX): 3 million. PayNet Coin: 1.88 million. USDD: 585,000. This activity shows TRON’s positioning as the leading blockchain for USDT transactions, benefitting from its relatively low fees and high throughput.
The passage of the US Genius Act, which reinforced the role of certain blockchains in stablecoin settlements, further boosted TRON’s relevance in global payment flows.
The analyst argues that while speculative trading around TRX’s price dominates headlines, its utility-driven demand in stablecoin transfers provides a strong foundation for long-term resilience.
With over 90% of its transaction activity tied to USDT, TRON’s role as an infrastructure layer for digital dollar settlements remains one of its key strengths.
Featured image created with DALL-E, Chart from TradingView
