Justin Sun’s Tron token is currently trading within a narrow range as the ongoing cryptocurrency sell-off persists, with Bitcoin dipping below $60,000.
As of now, Tron (TRX) is priced at $0.1542, just slightly under its peak for the week. According to CoinGecko, it ranks as the ninth-largest cryptocurrency with a market capitalization of $13.3 billion.
In the past week, TRX has outperformed several other major cryptocurrencies, experiencing a 0.97% increase. In contrast, Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) have seen declines of 6.2%, 10.6%, and 10.5% respectively.
Unfortunately, the Tron ecosystem is facing challenges, as most of the meme coins within the recently introduced SunPump ecosystem have experienced significant declines. The largest token, Sundog (SUNDOG), has fallen by nearly 30% over the last week.
Likewise, Tron Bull Coin, Muncat, Suncat, and Vikita have all dropped by more than 30% during the same timeframe. The only SunPump meme coins showing positive performance were Tron Bull and Tron Beer, with gains exceeding 16% and 40% respectively.
Other segments of the Tron ecosystem are struggling as well. For instance, the total value locked in its DeFi ecosystem has decreased by 6.8% over the past 30 days, now totaling $7.6 billion, making it the second-largest network after Ethereum.
The trading volume on Tron’s DEX has also fallen to $425 million, ranking it as the ninth largest player in the industry. It has been overtaken by newer chains such as Sui and Base, which recorded volumes of $700 million and $4.5 billion in the last week.
Despite these challenges, Tron has several strengths. It has established itself as a leader in the stablecoin payment sector. Data from TronScan indicates that Tether transactions surged by 9.75% on Oct. 2, reaching $70 billion.
Additionally, Tron is among the most lucrative chains in the cryptocurrency sector, generating over $1.37 billion in fees this year. Its revenue for the third quarter climbed to $577 million, surpassing both Bitcoin and Ethereum.
Tron price has paused
Tron reached an all-time high of $0.1690 on August 26 but has since declined by 8.83%. It still remains above the 50-day and 25-day Exponential Moving Averages, suggesting that bullish sentiment persists for the moment.
However, there are indications that it may have formed a bearish flag chart pattern, which is often associated with increased risk. Should this pattern manifest, Tron may potentially fall towards the critical support level of $0.1450, which represents the highest swing from February of this year.
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