Tron Paints 50% Rally Setup Following Trump’s $2.5M TRX Purchase

Tron (TRX) is gaining attention as it consolidates within a key technical pattern, signaling a potential breakout. Adding to the intrigue, a crypto fund tied to former U.S. President Donald Trump has recently ramped up its TRX holdings, sparking fresh interest in the token’s upside outlook.

TRX Price Eyes 50% Rally Next

Tron is flashing a potential 50% breakout opportunity as it consolidates within a falling wedge pattern on its weekly chart.

For the unversed, a falling wedge pattern forms when the price consolidates inside a range defined by two converging, descending trendlines. Meanwhile, it tends to resolve if the price breaks above the upper trendline with a rise in trading volumes.

In doing so, the price typically continues rallying to hit the target at a length equal to the wedge’s maximum height. As of Jan. 23, TRX/USD was nearing the upper trendline—at around $0.26—for a potential breakout toward $0.37.

In other words, a 50% price increase if the setup plays out as intended.

Otherwise, TRX will likely retreat toward the lower trendline target at around $0.22, not invalidating the bullish structure but raising the possibilities of further consolidation, at least until the price hits the apex point of around $0.20.

A breakout attempt from $0.20 will bring $0.30 in sight as the new upside target, up 21.25% from the current price levels.

Donald Trump Doubles Down on Tron Investments

Adding to the bullish sentiment, World Liberty Financial Investments (WLFI), the Trump-branded crypto project, recently purchased $2.6 million worth of TRX, increasing its total holdings to $7.5 million, according to on-chain data.

Interestingly, Justin Sun, the founder of Tron, had announced a $30 million investment in the project, becoming its largest backer and joining as an advisor. It isn’t clear if Sun has any further role inside WLFI that may influence its investment decisions.

Crypto traders tend to ignore such grey areas, but staying updated on Sun’s involvement in Trump’s WLFI project is important.

Tron’s Network Activity Soars After Stablecoin Launch

Recent developments on the Tron network indicate improving ecosystem activity, potentially supporting TRX’s outlook. On January 15, Justin Sun announced USDD 2.0, a revised version of Tron’s decentralized stablecoin that offers 20% APY.

All interest is sent to a transparent on-chain address. The announcement was paired with assurances of Tron’s financial stability, with Sun stating, “We have plenty of money, so stop asking me where the yield comes from.”

That same day, the network recorded a $3.6 trillion daily transfer volume, its second-highest ever, reflecting heightened activity.

Furthermore, the number of active addresses on Tron has steadily increased, suggesting a gradual rise in blockchain adoption.

These metrics highlight the growing usage of the Tron ecosystem and suggest that rising on-chain activity may provide structural support to TRX’s price.