Tron price remained consolidated on Tuesday as investors reflected on the new public listing news.
Tron (TRX) was trading at $0.2790, a few points above this week’s low of $0.2670. It has risen by almost 40% from its lowest level this year.
The biggest Tron news is that it will execute a reverse merger with SRM Entertainment, a company that sells branded toys. Dominari Securities, a company with ties to the Trump family, is arranging this merger.
The merger will see SRM accumulate TRX tokens, mimicking the strategy of Strategy, which transformed from a small tech company into the largest Bitcoin (BTC) holder. Strategy’s market capitalization has soared from $1 billion in 2020 to $105 billion today.
The deal comes after the successful Circle IPO, which has pushed its market capitalization to over $33 billion. Other companies in the crypto industry, like Gemini, Galaxy Digital, and Kraken, are also considering going public late this year.
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Tron has grown into one of the largest cryptocurrencies, with a market capitalization of over $24 billion. It is also the second most profitable crypto project after Tether.
According to TokenTerminal data, Tron has generated over $3.65 billion in revenue over the past 365 days, with $1.6 billion recorded so far this year. Most of these fees are either burned or distributed to super representatives.
The token-burning mechanism contributes to Tron’s deflationary nature. Its circulating supply has dropped from 96.3 billion in June last year to 94.8 billion today.
Tron price technical analysis
TRX price chart | Source: crypto.news
The daily chart shows that TRX has been in a gradual uptrend in recent months, rising from a February low of $0.20 to $0.2743 today.
The price has moved above the 50-day and 100-day Exponential Moving Averages (EMAs), signaling that bulls remain in control.
Tron has also formed a cup-and-handle pattern, a popular continuation formation, and is currently developing the handle portion. If the pattern holds and TRX breaks above the year-to-date high of $0.2958, a continuation rally toward last year’s high of $0.4497, a roughly 60% upside, becomes increasingly likely.
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