Analysis of the prices of the crypto Tron (TRX) and Cardano (ADA)

In this article, we delve into the price situation for Tron (TRX) and Cardano (ADA), two of the most watched cryptos by investors in recent times.

The coins could grow well from here to the end of the year if the crypto market overall goes for a recovery scenario.

To encourage the bull theses, we find the strong increase in the revenue of the Tron network and the recent “Chang” update of the Cardano blockchain.

These two events offer a narrative upon which traders could take advantage to push forward speculations, driving up the prices of the two crypto.

Let’s see all the details below.

Summary

• Revenue growing on Tron: could TRX crypto prices rise more than Cardano (ADA)?
• Cardano completes the Chang update: ADA assumes a new utility
• Bitcoin dominance and altcoin market: where are we?

Revenue growing on Tron: could TRX crypto prices rise more than Cardano (ADA)?

As mentioned, the fundamental analysis of the Tron and Cardano projects is fueling bull theses in the medium term for the prices of the respective cryptos TRX and ADA.

Focusing on the first, we can immediately highlight how recently the cryptographic network has recorded a significant increase in revenue.

According to LookonChain data, in fact, Tron saw a 46% increase in gas revenue in the month of August.

The causes are to be found in the recent success of the platform SunPump, which has triggered a large flow of trading on the blockchain.

In the same period, other chains reported a sharp decline in revenue, such as Ethereum, Solana, and Bitcoin, while BSC shows a modest increase of 6.6%.

The #TronNetwork’s gas revenue saw a 46.54% increase in August.

Compared to July, #BSC’s gas revenue also saw a 6.63% increase in August, while gas revenue of #Ethereum dropped 33.44%, #Solana dropped 48.51%, and #Bitcoin dropped 16.85%. pic.twitter.com/HChuiq17uB

— Lookonchain (@lookonchain) September 3, 2024

The increase in popularity and revenue for the Tron network could result in the bull of the price of the crypto TRX, gas token of the ecosystem.

Justin Sun’s coin has already increased in value by 96% since the beginning of the year, with a 20% surge in the last 30 days that has taken it above 0.15 dollars.

In the last seven days, the performance has slightly decreased by 6%, but the graphical outlook remains overall bullish. Prices consistently move above the EMA 50 weekly, highlighting a bullish bias governed by the bulls.

Tron is overall quite close to the local high of 2021 at 0.18 dollars, with a distance of about 20%.

If it should break that level in the short term, a phase of price discovery could start, with the first target at 0.20 dollars and the subsequent ones still not identifiable.

Eyes also focused on the 0.14 level, which if broken to the downside would destabilize part of the frenzy that characterizes the crypto chart.

We will see if the blockchain revenues will continue to justify the optimism among Tron investors and if the token will continue to excite its holders.

Weekly chart of Tron price (TRX/USDT), Binance market

Cardano completes the Chang update: ADA assumes a new utility

While the price scenario on Tron appears more than positive, the graphic situation of the Cardano crypto is totally different.

ADA, unlike TRX, has lost a lot of ground since the beginning of the year with a 44% drop in prices. In the last month, the token has accelerated its decline, recording a negative performance of 17%, bringing the coin below 0.35 dollars.

While the founder of the cryptographic project Charles Hoskinson criticizes the “religion” of Bitcoin supporters, his asset is approaching multi-year lows.

Compared to the highs of September 2022, ADA is in a drawdown of about 90% and does not seem to show signs of an instant recovery.

The bears do not seem to give up, with crypto prices below the main moving averages in all long time frames and the graphical direction clearly bearish.

Monthly chart of Cardano price (ADA/USDT), Binance market

Despite this, the success of the recent hard-fork update “Chang” could bring a more bullish outlook back to the market.

The upgrade of the Cardano network, which introduces the mechanism of on-chain governance, indeed adds a utility factor to ADA.

The cryptocurrency, becoming an essential tool for internal decision-making within the project, could attract various buyers.

Even though at the moment the shadow of buyers cannot be seen even with binoculars, we might witness a bull return in the last quarter of the year.

At the end of December, Cardano will become a fully decentralized network in terms of governance, and users might prepare in advance for the event.

For now, it is still too early to talk about a return to the bull market: first of all, we need to see ADA recapture the 0.45 dollar threshold.

From there, a break of the subsequent targets at 0.60 and 0.80 dollars could at that point trigger a bull run of prices as happened in 2020/2021.

Bitcoin dominance and altcoin market: where are we?

The analysis of the prices of the crypto Tron and Cardano is obviously influenced by the market dynamics of Bitcoin, which reigns supreme over the entire cryptographic market.

The dominance of the main cryptocurrency by market capitalization has been on the rise since November 2022, when the entire sector hit the bottom in conjunction with the crash of FTX.

From there on, the index has indeed grown by about 45%, bringing BTC to 57.38%, the highest level since March 2021.

In a scenario of Bitcoin dominance rise, it is clear that coins like Cardano and Tron are disadvantaged compared to such a bullish benchmark.

Usually, the altcoin perform better when BTC loses ground in terms of dominance, as happened from December 2020 to May 2021.

From here we expect another leg up of the chart below, with a growth up to above the key level of 60%, and then wait for a heavy leg down.

Indicatively altcoin like the crypto of Cardano and Tron will see the maximum price speculation when the BTC.DOM falls below the EMA 50 weekly.

At the moment even the “l’altcoin season index” seems to highlight a picture where Bitcoin emerges as the dominant asset.

Historically, when this indicator drops to the level of 20, excellent buying opportunities are created on the altcoin front in a time horizon of 5-6 months.

In November 2023, for example, the same chart showed a value almost identical to the current one: in the following months, several alt recorded good price performance

Cardano and Tron, considering the good news on the fundamental front, could benefit from a similar scenario for Q4 2024, with the prices of the respective crypto in strong rise.

Altseason, we’re almost there!

Source: https://www.blockchaincenter.net/en/altcoin-season-index/

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