Tron (TRX) Maintains Strength Following T3 Financial Crime Unit Launch
Will TRX Reach New Yearly High? | Credit: Hameem Sarwar
Key Takeaways
- Tron, Tether, and TRM Labs launched the T3 Financial Crime Unit.
- The TRON (TRX) price has fallen since its yearly high on Aug. 25.
- How will the price of TRX respond to the creation of T3 FCU?
The Tron (TRX) price has performed admirably since April. During this time, it increased over 40%, despite an ongoing market correction. The upward movement resulted in a new yearly high on Aug. 25, but the price has corrected since.
A new announcement on Sept. 10 stirred up interest in the Tron ecosystem, but it remains to be seen if it will take the price above its yearly high.
Financial Crime Unit
On Sept. 10, Tron announced that it is teaming up with blockchain intelligence firm TRM Labs and Tether to create the T3 Financial Crime Unit (FCU).
As per the statement , the collaboration aims to create a safer and more secure crypto community by combining TRM Labs’ financial crime expertise, the technical expertise of the Tron blockchain and DAO, and the investigative abilities of the Tether team.
It is interesting to note that in a 2023 report , TRM labs noted that 45% of the illicit activity occurred on the Tron blockchain. With that in mind, it makes sense that Tron is teaming up with both Tether and TRM Labs since over 35% of all USDT is on the Tron network.
In an X post, Tron founder Justin Sun stated that the collaboration aims to ensure that “blockchain technology is used to make our world a better place, and sends a clear message that illicit activity is not welcome in our industry.”
So far, the T3 FCU has frozen over $12 million in USDT linked to scams.
TRON Price Falls After Yearly High
The wave count shows that the price of TRX has started a five-wave increase in November 2022 (white).
In the upward movement, wave five developed into an expanding diagonal, as evidenced by the breakout from an ascending wedge. The Aug. 25 yearly high was made at exactly the 1.61 external Fibonacci retracement of wave four. So, the TRX price increase may be over.
However, technical indicators do not clearly show weakness. While the MACD and Relative Strength Index (RSI) are falling, neither has generated bearish divergences.
So, wave five may extend. If TRX closes above $0.17, the next target will be at $0.21, giving wave five the same length as waves one and three.
SunPump Volume Declines
A potential reason for the TRX price decline after its yearly high is the diminishing interest in SunPump, the launchpad platform designed to bolster meme coin adoption on the Tron network. The platform launched on Aug. 12 and witnessed a surge in trading volume. Total Swap Volume peaked at just over $46 million on Aug. 21.
However, volume has steadily declined since, resulting in a low of only $4 million on Sept. 8. Other metrics such as the amount of tokens created and the number of active swappers have fallen at similar rates.
The decrease in volume aligns with that in price. TRX reached a yearly high on Aug. 25, only four days after swap volume peaked, and one day before volume started falling at a more precipitous rate.
TRX’s Future Trend Unclear
Because of a valid completed wave count, the TRX price may have reached the top of its market cycle. However, there are no clear signs of weakness present, so the uwpard movement may extend for another leg. In any case, the price of TRX seems to be approaching the end of its long-term upward movement.
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