The Tron token experienced a significant rally for six consecutive days, reaching its peak since August as Justin Sun shared a confident outlook concerning its ecosystem.
As the tenth-largest cryptocurrency, Tron (TRX) climbed to $0.166, edging closer to the critical resistance level of $0.1700. This point is significant as it marks its highest level since August 25 and May 2021.
In a recent post on X, Sun expressed optimism about the token’s performance in the weeks ahead, citing the revitalization of its meme coin ecosystem as support.
Recently, Tron meme coins have struggled, as investor attention shifted to Solana tokens such as Popcat (POPCAT) and Cat in a Dog’s World (MEW).
According to data from CoinGecko, the total market cap for all Sun Pump meme coins is $344 million, a decline from an all-time high of over $700 million. Many of its leading tokens, including Sundog, Tron Bull, and Invest Zone, have decreased significantly from their peak values.
In his recent post, Sun mentioned that these tokens are likely to recover once Tron’s price surpasses its peak value this year. Such a movement could induce Fear of Missing Out (FOMO) among traders, reminiscent of past surges when Shiba Inu remained stagnant between May and June 2021 before skyrocketing by 1,150% in October.
Despite Tron’s recent resurgence, other parts of its ecosystem are still facing challenges. According to data from DeFi Llama, trading volume across its DEX platforms has fallen by 24% over the last week, dropping to $756 million. Platforms like Mantle, Dexalot, and Sui have surpassed it. Additionally, Tron’s DeFi assets have decreased by 11% over the past month, now totaling $7.15 billion.
Tron is showing robust technical indicators
The weekly chart illustrates that the TRX token has been on a strong upward trajectory since hitting a low of $0.0454 in 2022. It tends to show lesser correlation with Bitcoin (BTC) and other major cryptocurrencies like Ether and Solana.
At present, Tron is striving to surpass the significant resistance level of $0.1690, which is its highest point this year. It has consistently remained above its 50-week and 25-week moving averages, signaling that bullish sentiment is dominating.
Consequently, a breakthrough above the resistance at $0.1690 could lead to additional gains, with a possible target of $0.20.
