Tron (TRX) has recently shown signs of a potential local bottom, suggesting that the altcoin may be primed for an upward trend.

As of now, the USDT supply on the Tron blockchain has skyrocketed to a staggering $61.67 billion, marking a remarkable 28.7% increase in 2024 alone. However, since hitting a high of $0.45 in early December, TRX has struggled to maintain its momentum, plummeting to lows around $0.22 over the past three weeks.

The recent volatility has left analysts pondering the future direction of Tron. CryptoQuant analyst Burak Kesmeci has expressed cautious optimism regarding a possible trend reversal, indicating that the recent price heatmap suggests a local bottom is emerging.

TRON: A Glimmer of Hope?

Kesmeci’s analysis highlights that Tron’s price heatmap has historically played a pivotal role in guiding price movements during bull markets. At present, the market is experiencing considerable corrections, leading to the belief that the current price level may serve as crucial support, potentially signaling the end of a downtrend.

The indicators included in the price heatmap display varying resistance levels: the one-year moving average (MA) plus two sigma stands at $0.23, with corresponding levels at $0.40 and $0.49 for the purple and blue trends. If prices were to dip below the $0.23 green trend, there could be severe implications for TRX's bullish prospects.

Conversely, if TRX holds steady around this price level, it could ignite renewed upward momentum. Should demand continue to rise, TRX could target the resistance zones around $0.40 and $0.49. A breakout above the $0.40 trend line would instill strong market confidence and likely result in upward price pressure.

Notably, despite TRX's recent price struggles, the Tron blockchain has witnessed an upswing in demand. The burgeoning USDT supply on the platform is encouraging, having soared from $32 billion in 2022 to this year's impressive total of $61.76 billion—a significant uptick from $48 billion in just one year.

The Future of TRX

Given the current analysis and rising demand, the outlook for TRX appears promising. Should demand persist, further gains could be on the horizon. The user base for the Tron blockchain is likely to expand, leading to increased adoption and a positive spiral that would impact TRX's price.

So, what's next for TRX? If demand holds steady, analysts predict that TRX could make an attempt to push towards $0.275 in the short term. A break above this level could propel it towards the $0.30 mark. However, if the downtrend continues to prevail, TRX risks slipping back to the $0.22 threshold.

In a market that can change in an instant, the upcoming weeks for TRX will be critical in determining if it can reclaim its bullish momentum or face further setbacks. Keep your eyes on this developing story as we uncover the mystery: Is TRON primed for its next big leap, or will it remain trapped in a downward spiral?