Outside Source
Tron token rallied for six consecutive days, reaching its highest level since August as Justin Sun made a bold prediction about its ecosystem.
Tron (TRX), the tenth-largest cryptocurrency, rose to $0.166 as it approached the important resistance point at $0.1700. This is a notable level since it was its highest point on Aug. 25 and in May 2021.
In a post on X, Sun predicted that the token would perform well in the coming weeks, supported by the resurgence of its meme coin ecosystem.
Tron meme coins have not done well in the past few weeks as investors have shifted their focus to Solana tokens like Popcat (POPCAT) and Cat in a dogs world (MEW).
Data from CoinGecko shows that all Sun Pump meme coins have a market cap of $344 million, down from an all-time high of over $700 million. Most of its top tokens, like Sundog, Tron Bull, and Invest Zone, have fallen from their all-time highs.
In his post, Sun noted that these tokens will soon rebound when Tron’s price flips its highest point this year. Such a move could trigger Fear of Missing Out (FOMO) among traders. A similar rebound occurred in the past; for example, Shiba Inu remained in consolidation between May and June 2021 before rocketing up by 1,150% in October.
Tron’s ongoing comeback has taken place even as other parts of its ecosystem remain under pressure. Data from DeFi Llama shows that volume in its DEX platforms dropped by 24% in the last seven days to $756 million. It has been overtaken by platforms like Mantle, Dexalot, and Sui. Tron’s DeFi assets have also dropped by 11% in the last 30 days to $7.15 billion.
Tron has strong technicals
The weekly chart shows that the TRX token has been in a strong uptrend after bottoming at $0.0454 in 2022. It is often less correlated with Bitcoin (BTC) and other big coins like Ether and Solana.
Currently, Tron is attempting to break through the important resistance point at $0.1690, its highest level this year. It has remained above the 50-week and 25-week moving averages, indicating that bulls are in control.
Therefore, a break above the resistance at $0.1690 could lead to further gains, with a potential target of $0.20.
This article first appeared at crypto.news
