TRX hit $0.42, but the take profit pressure may cause the price to fall.

Since the beginning of the year, Tron (TRX) has maintained a stable upward trend, thereby bringing impressive realized gains for investors.

As of now, the price of TRX has remained relatively unchanged compared to the previous trading session; however, the daily trading volume is still high, around 920 million USD.

The actual profit of TRX has reached a record high

In the past 24 hours, the actual profit from TRX ranked second in the entire market since the beginning of the year, only behind Bitcoin (BTC) and Ethereum (ETH), with amounts of 665 million USD and 337 million USD respectively.

This total profit has increased significantly over the past 5 days, nearing the 1 billion USD mark. Although the SOPR ratio is at 1.04, the Net Unrealized Profit/Loss ( indicator reflects a cautious sentiment.

This indicates a short-term change in investor behavior – likely leaning towards profit-taking. According to data from Glassnode, most of these investors have held TRX since the growth cycle of 2020–2021.

![])https://img-cdn.gateio.im/webp-social/moments-94eebbcf21ce8a81db6e65e2439ae73d.webp(Source: Glassnode## What is behind this wave of profit-taking?

The first factor is the token burning mechanism to create scarcity. As of now, Tron has burned approximately 40 billion TRX, thereby reducing the supply.

In August alone, Tron removed 166 million TRX from circulation – about 1/10 of the amount of tokens burned in July. Since the beginning of 2023, the Tron Foundation has maintained a regular token burning policy.

![])https://img-cdn.gateio.im/webp-social/moments-aa738dbb6b7e9838c9d5457d915de04e.webp(Source: CryptoQuantAdditionally, the price increase is also driven by revenue from transaction fees, as Tron is one of the main platforms for issuing stablecoins.

Tether's USDT – mainly issued on Tron and Ethereum – generates approximately 7.57 billion USD in revenue each year from transaction fees.

In addition, Justin Sun – the founder of Tron – is still actively promoting the ecosystem, including collaborations with other blockchains and leveraging the memecoin trend such as TRUMP, contributing to attracting interest and boosting activity on the network, improving revenue for participants using the memecoin trading platform.

TRX may adjust in the short term

With the increasing wave of profit-taking, TRX may face a short-term correction.

Currently, TRX is trading around $0.33, reversing down after hitting a local peak at $0.42; however, the price is still much higher than the 52-week low of $0.20 set earlier in February.

The MACD indicator is showing a reversal signal as buying pressure shows signs of weakening and gives way to the sellers.

![])https://img-cdn.gateio.im/webp-social/moments-ace19069d42ec7b863b798397d508d87.webp(Source: TradingViewHowever, the Stochastic RSI indicator reveals that the selling pressure is gradually depleting after a period of investors taking profits. With the index at 40, close to the neutral threshold, TRX may stabilize again soon.

In general, after a short-term correction due to profit-taking pressure, TRX may continue its upward trend if the market stabilizes again.

Vincent