#GateSquareMayTradingShare

TRON (TRX) Price Touches 8-Month High, but On-Chain Data Shows Warning Signs
TRON (TRX) rises more than 7% in May 2026, even reaching an 8-month high over the weekend. This price increase is not the only one happening.
Other altcoins, such as Zcash (ZEC), Ondo (ONDO), and Toncoin (TON), have also experienced rallies this month. However, one key on-chain signal is raising concerns about the sustainability of the TRX rally.
TRX Breaks US$0.35 as Tron Boosts Treasury
Based on market data, TRX briefly surged to US$0.353 on May 9, marking the highest level since mid-September 2025. The token was trading at US$0.349 at the time of this article’s publication, a slight increase of 0.2% in a day.
In addition to the rising price, Tron Inc., the treasury company operating around TRX, added another 142,127 coins at an average price of US$0.3518. This recent purchase pushed the company's total holdings to over 695.4 million TRX.
“The company aims to continue increasing Tron DAT holdings to add long-term value for shareholders,” the company’s spokesperson explained.
On-Chain Signal Not Supporting Price
Despite the price increase, network activity has not kept pace with the rally, according to CryptoOnchain analysis. The total number of tokens transferred on the network decreased from around 17.3 billion to 12.2 billion in the past month.
“Typically, a healthy and sustainable price rally is validated by increased activity and network utility. This stark difference indicates that the upward momentum toward US$0.35 is currently not supported by real on-chain usage. It suggests that the recent price movement is more driven by speculation or accumulation rather than organic network activity,” the analyst commented.
According to the analyst, the US$0.35 level remains vulnerable if transaction activity does not support it. If buying power begins to decline, the lack of “fundamental utility” could trigger the next price drop.