Cardano (ADA) and TRON (TRX) Fight for Top 10 Crypto Position
Will TRX or ADA Come Out on Top? | Credit: Derek Fenech
Key Takeaways
- TRON (TRX) is showing weakness despite reaching a new yearly high.
- Cardano (ADA) has created a bullish inverse head and shoulders pattern.
- Will TRX or ADA finish 2024 ahead, holding the tenth-biggest crypto spot?
On Sept. 16, TRON (TRX) was the tenth largest cryptocurrency, while Cardano (ADA) was right behind, in eleventh. They currently have a $800 million difference in market capitalization. Since there are 36 billion ADA in circulation, only a $0.022 price increase will be needed for ADA to surpass TRX in market cap.
Let’s analyze the price movement for both and determine which has a better chance of finishing inside the top ten cryptos by the end of the year.
TRON Shows Weakness
The TRX price has increased since October 2022. The upward movement initially stalled at the $0.145 horizontal resistance area, but the price pushed through and broke out in August 2024. The breakout led to a high of $0.169.
However, TRX has fallen since, possibly returning to validate the $0.145 area as support. This decline was preceded by a bearish divergence in the weekly Relative Strength Index (RSI) and MACD indicator (green).
Such a divergence in the weekly time frame is rare and often signals a long-term trend reversal.
The wave count also suggests that TRX is in the fifth and final wave of its increase (white).
So, while wave five may extend to the next target at $0.20, the TRX price is likely reaching the end of its upward movement.
ADA Creates Bullish Pattern
The most likely ADA price analysis shows a completed five-wave upward movement that started in June 2023 and ended with a yearly high of $0.81 in March 2024. Since then, ADA has likely been mired in a W-X-Y correction, which could have ended on Aug. 5.
The creation of an inverse head and shoulders pattern supports this possibility since the pattern often leads to a bullish breakout. Additionally, the 2-day MACD has generated bullish divergence, often leading to upward movements.
A breakout that travels the entire pattern’s height can lead to a high of $0.61.
However, if the ensuing upward movement is the same as that of June 2023, ADA could reach a high of $0.87.
This would make more sense in the context of a larger upward movement since the first five-wave increase is either wave A in an A-B-C structure or wave one in a new five-wave increase.
ADA vs. TRX: Who Comes Out on Top?
TRX has performed much better than ADA in 2024 and since the start of the bullish cycle. However, its price is likely closer to the end of the upward movement than Cardano. On the contrary, ADA could soon begin another upward movement, gaining relative to TRX in the process and possibly leap-frogging TRON into the top ten.
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