Tron (TRX) Eyes All-Time High as Risk Metrics and Sharpe Ratio Flash Bullish

• Based on bullish technical indicators, Tron is poised to hit its ATH of $0.4.
• The Tron chain dominates the stablecoin market amid rising adoption.

Tron (TRX), currently ranked the tenth-largest cryptocurrency by market capitalization, is poised to reclaim its All-Time High (ATH). The Tron coin has seen an 11% surge in the past month, fueled by a general market uptrend.

Tron Price Showing Resilience

Tron is currently trading at $0.28 after recently experiencing a mild price correction. Despite this, TRX has emerged as one of the most “resilient” crypto assets, maintaining proximity to its ATH alongside Bitcoin.

In a recent CryptoQuant Quicktake post, Joao Wedson, CEO of Alphractal, noted that the Drawdown Heatmap supports this strength. CryptoQuant’s Drawdown Heatmap revealed a notable recovery in TRX since its 2024 peak.

The analyst highlighted the Sharpe Ratio as a key metric flashing a bullish signal for TRX. The current Sharpe Ratio for TRX, annualized over 180 days, hovers between 0.1 and 0.15. This range suggests a moderate risk-return balance, contrasting many altcoins suffering negative or near-zero Sharpe Ratios after recent corrections. Thus, the TRX coin is positioned as a more stable option.

The Normalized Risk Metric (NRM) also shows a positive outcome for TRX. This metric hovers close to 0.5, indicating a moderate risk profile. Therefore, it has removed TRX from high-alert or undervaluation levels, suggesting healthy market behavior.

It is important to note that TRX saw a mild correction after its late-2024 rally. Its current positioning near ATH suggests underlying investor confidence and potential institutional interest. 

TRX joins a select group of cryptocurrencies showing strong macro resilience, unlike many assets still lagging behind their historic highs. As a result, Wedson stated that TRX offers a measured opportunity for risk-aware investors.

The latest price action has pushed almost all the coin holders into the green. Almost all investor cohorts, from one-week traders to one-year investors, have recorded gains.

Tron Dominates the Stablecoin Market

As noted in our earlier post, technical indicators suggest TRX could soon see a 65% price increase. A breakout above the upper trendline of the symmetric triangle could propel TRX towards the $0.30 mark. 

Tron has a market cap of $26.4 billion, while the daily trading volume increased by over 32% to over $1 billion. With the $0.2774 price mark, it has jumped by 3.6% in 24 hours.

Notably, Tron is increasingly dominating the stablecoin market. In a recent study, we reported that over 283 million USDT transfers have emerged on the Tron network this year. This figure highlights Tron’s increasingly vital role as a payment and settlement layer for stablecoin transactions.

Whales’ interaction and the increasing adoption of the Tron infrastructure add to the network’s hype. As explained in our last analysis, users connect the TRON network with other blockchains. In this case, Tron acts as a digital bridge, allowing assets to flow in and out.