Tron Price Drops 5.48% as Bearish Sentiment Resurges

The Tron price has been on a recovery path since hitting a low point in mid-March, showing a steady increase almost every week. This upward trend mirrored the improving sentiment in the broader crypto market, with TRX maintaining stability in its bullish momentum throughout May, reaching a local high above $0.28. However, this steady growth faced a significant challenge over the past week, indicating a resurgence of bearish sentiment in the altcoin market.

On-chain analyst Burak Kesmeci published data on the CryptoQuant platform, highlighting that Tron's value dipped by as much as 5.48% within 48 hours. Kesmeci's analysis focused on the Spot Taker CVD (Cumulative Volume Delta, 90-Day) metric, which measures the net difference between market buys and market sells over a 90-day period. A positive and rising CVD value indicates higher Taker Buy volume and buyer dominance, while a negative or dropping value suggests higher Taker Sell volume and seller dominance.

Kesmeci's data showed a transition from buyer dominance to seller dominance, with the market shifting from green bars (Taker Buy Dominant) to red bars (Taker Sell Dominant). This shift became evident around May 22nd and has since intensified, leading to a steady decline in Tron's price. However, the Cumulative Volume Delta has shown neutral on-chain action over the last few days, indicating investor uncertainty about the cryptocurrency's future trajectory.

Kesmeci warned that if the negative CVD trend continues, it could signal further correction in Tron’s price. The neutral state of current on-chain activity suggests that investors are cautious about the future trajectory of the cryptocurrency. However, investors should remain vigilant as increased sell pressure could heighten volatility and lead to liquidations. As of the latest update, Tron is trading at $0.2656, reflecting a 1% price rise in 24 hours. Despite this, the TRX token has seen a more than 1% decrease over the past seven days.