- Tron executed its biggest fee cut ever, slashing energy costs by 60% to boost adoption and lower transaction expenses.
- TRX price dropped 4% as traders turned bearish, with $64M in shorts outweighing $15.9M in longs by over 300%.
- Technicals show a death cross and falling RSI, signaling consolidation likely between $0.33 and $0.36.
Justin Sun has just pushed through the biggest cost cut in Tron’s history, slicing network fees by 60% in one move. Effective August 29, energy costs will drop from 210 sun to just 100 — a change meant to supercharge adoption and keep Tron competitive in the stablecoin wars. But the market’s reaction hasn’t been kind. TRX slid 4% in a single day, and data shows shorts are piling in, outnumbering longs by more than 300%.
Fee Cuts Meant for Growth, But Investors Brace for the Fallout
Sun defended the move under Tron Improvement Proposal #789, saying TRX’s price doubling since 2024 made transactions too expensive in dollar terms. Cutting fees, he argued, will attract more users and fuel long-term growth, even if token holders see reduced income in the short run. The Tron Super Representative community will now review fees quarterly to balance adoption goals with network profitability.
Still, the short-term picture is rough. CoinGlass data shows $64 million worth of short positions stacked against TRX versus just $15.9 million in longs. Heavy bearish bets sit at the $0.36 level, while the strongest bull support is clinging to $0.33. In between, traders are watching a technical battlefield — and it’s the bears who seem to be in control.
Stablecoin Dominance vs. Bearish Technicals
Tron remains a powerhouse in stablecoins, handling $82 billion of USDT supply and about $24 billion in daily transfers, roughly 20% of Tether’s global volume. Fee cuts could only strengthen this dominance, but they also slash the incentives for TRX stakers, possibly leading to big waves of unstaking and supply hitting the market.
On the charts, things don’t look much better. TRX just flashed a death cross — the 5-day moving average dipping below the 8- and 13-day lines — a bearish warning sign. RSI has slipped back toward 59, leaving room for further downside. Trading volume spiked nearly 30% during the selloff, confirming that pressure is coming from the sell side, not eager buyers.
What’s Next for TRX Price?
Analysts expect TRX to remain boxed in between $0.33 and $0.36 until bulls manage a clear breakout. For now, the consolidation zone looks locked in, with bears betting hard against a quick recovery. If Sun’s gamble works, Tron could pull in new users and cement its lead in stablecoins. But in the short term, the network’s boldest fee cut yet is shaping up as a double-edged sword — adoption may rise, but TRX holders are feeling the sting first.
