TRX’s recent price surge is increasingly appearing disconnected from actual blockchain activity and transaction volume, raising concerns about the strength of its current momentum.
TRON has delivered a strong performance throughout 2026, with the asset gaining more than 23% over the past five months. However, fresh data now suggests the cryptocurrency could be vulnerable to a correction.
According to CryptoQuant, TRX is displaying what the analytics firm described as a “glaring divergence” between price action and on chain activity, even as the token recently pushed back toward the $0.35 level.
Weak Network Activity Raises Concerns
CryptoQuant’s analysis revealed that although TRX climbed roughly 10% over the past month, the network’s “Tokens Transferred Total” metric moved sharply lower during the same period.
The total volume of transferred tokens reportedly dropped from nearly 17.3 billion to approximately 12.2 billion, despite the continued rally in price. The analytics platform noted that this disconnect is raising doubts about whether TRX’s upward move can be sustained, since healthy price growth is usually supported by increasing network usage and stronger utility.
The firm suggested the divergence may indicate that the latest rally is being driven more by speculative trading or token accumulation rather than genuine activity across the Tron ecosystem.
CryptoQuant also warned that if buying momentum weakens, the lack of stronger transactional support could leave the $0.35 price zone exposed to downside pressure, increasing the possibility of a near term correction.
Justin Sun’s Legal Dispute Adds More Pressure
Despite mounting controversy surrounding Justin Sun and the Trump affiliated crypto project World Liberty Financial, TRX has so far remained relatively stable.
The dispute intensified in mid April after World Liberty Financial proposed converting more than 62 billion locked tokens into a fixed vesting structure. Under the proposal, holders who rejected the arrangement risked having their assets remain locked indefinitely.
Sun criticized the plan, describing it as coercive and arguing that token holders opposing the proposal were effectively being penalized. He also claimed that his own WLFI tokens, representing roughly 4% of the project’s voting power, had been frozen, preventing him from taking part in governance decisions.
In addition, the Tron founder accused World Liberty Financial of operating through centralized mechanisms hidden behind what was presented as a decentralized governance system. According to Sun, anonymous actors within the project had the ability to freeze assets and override governance outcomes.
Several days later, Sun filed a lawsuit in California seeking the restoration of his voting rights and access to his tokens.
World Liberty Financial rejected the accusations and countered by alleging misconduct and misinformation on Sun’s part. Earlier this month, the company reportedly filed a defamation lawsuit against the Tron founder in Florida, accusing him of leading a smear campaign against the project and its supporters.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
