Tron (TRX) continues its downward trend, reaching a four-week low, as founder Justin Sun encourages investors to seize the opportunity and buy the dip.

Significant Price Decline

TRX drops over 50% from December highs
TRX plummeted to $0.2200, marking a sharp decline of more than 50% from its December peak. This drop reduced Tron's market cap from over $26 billion to $19 billion. Despite this downturn, Justin Sun remains bullish, emphasizing that Tron is undervalued.

Strong DeFi and USDT Transaction Growth

Tron excels in DeFi and stablecoin transactions
Tron ranks third in decentralized finance (DeFi), trailing only Ethereum and Solana, with $6.69 billion in total value locked. Additionally, Tron leads in Tether (USDT) transactions due to its lower fees, processing $137 billion in USDT transfers—a 91% increase in a single day. The network boasts over 59.2 million USDT holders.

Robust On-Chain Activity and Staking Rewards

Active users and staking yields support growth
Tron maintains steady activity with 2.17 million monthly active addresses, second only to Solana. Its decentralized exchanges (DEXs) have processed nearly $100 billion in volume. Furthermore, Tron offers a 4.52% staking yield, bolstered by increasing network fees and a shrinking circulating supply, now at 86.17 billion TRX.

Technical Analysis: Bullish Double Bottom

Chart signals possible price recovery
Tron's daily chart reveals a double-bottom pattern at $0.2245, signaling a potential bullish reversal. A breakout above the neckline at $0.2760 could spark a recovery. However, if TRX falls below $0.2245, it risks dropping to $0.20, following its long-term ascending trendline.

Outlook for TRX Investors

Market uncertainty vs. recovery potential
While current market conditions are bearish, Tron’s strong fundamentals and bullish technical signals suggest a possible recovery. Investors should monitor price movements closely, especially around the $0.2245 support level.