As the newest committee proposal nears completion, Tron will undergo dramatic changes. An update tweet states that the fee cap for smart contracts will be raised from 10,000 to 15,000 TRX coins.
The developers believe this would mitigate the risk connected with smart contracts by reducing the number of low-value smart contracts created on the ecosystem.
At the same time, it will greatly increase the #TRX staking rate and burning volume, further expand the #TRX deflation rate to 3.17%, and the annual burning volume of #TRX on the #TRON network will reach 5 billion.
👀For more analysis, please refer to: https://t.co/AM8YebxxvG
— TRON DAO (@trondao) December 4, 2022
Let’s take a quick look at TRX’s performance:
- Improvements to the Tron ecosystem have boosted investor confidence.
- The indicators point to the formation of a robust uptrend.
- Price could rise to $0.05560 or higher on a rebound from the current level of $0.05274.
As the burn rate of TRX increases with the increase in fee limit, the deflection in the ecosystem would also grow, from -1.39% to -3.17%. According to the developer’s Medium post, a rise in fee limitations would also impact the staking rate.
In aggregate, the shifts herald the beginning of bullishness in TRX, however CoinGecko reports a 1.1% decline in the daily timeframe price of TRX. Will these changes influence the price of TRX?
What The Coming Days May Bring For Tron
There is an indication that TRX is beginning to rebound from the market downturn that followed the FTX disaster. In Tuesday’s trade, TRX shows a red candle at $0.05278. It would appear that the RSI statistics are bullish in the short and intermediate term, however this is negated by the fact that the RSI has a bearish crossover.
The MACD indicator corroborates this. Despite the fact that the market appears to favor buyers, bearishness can still be observed as the EMAs of the MACD indicator trend downwards.
Chaikin’s money flow index suggests that bulls are still in charge of the market, and this optimistic sentiment is reinforced by the MFI of TRX, which opposes the price decline. This indicates that the developing decline has no actual impetus.
Investors and traders could rely on the $0.05 support, which halted additional declines on November 11, when both cryptocurrencies and equities collapsed following the November 10 release of the Consumer Price Index.
Solid Bullish Momentum For TRX?
According to Messari’s measures of volatility, TRX is relatively stable. This further reinforces the optimistic conclusion anticipated by the community. With Bitcoin’s price breaking past the $17K barrier and TRX’s increasing link to BTC, we can anticipate further bullishness.
Even though the price trend is falling, a rebound from $0.05274 to $0.05560 and above is inevitable.
TRX total market cap at $4.8 billion on the daily chart | Featured image: Freepik, Chart: TradingView.com