Usman Salis
TRX, the native token of the TRON blockchain, has jumped 12%, fueled by the SunPump memecoin launch. The token's trading volume and market cap have also soared, reaching new highs.
TRX Hits 12% Gain as Memecoin Hype Takes Over
TRX, the native token of the TRON blockchain, has seen a significant surge, climbing 12% over the past day. This impressive gain makes TRX the top performer in the crypto market. On August 21, TRON's price jumped 10.6% to reach $0.1594—a peak not seen since April 2021. This price increase was accompanied by a 121% boost in daily trading volume, which now stands at $1.92 trillion. Additionally, TRX’s market capitalization has risen to $13.89 billion, securing its position as the 11th largest cryptocurrency.
The recent price spike appears to be driven by the launch of SunPump, TRON’s latest venture into the booming memecoin sector. Data from Dune Analytics shows that since its introduction, over 18,000 memecoins have been created on the SunPump platform, generating 7,080,777 TRX (approximately $1.12 million) in revenue. The launch of SunPump has ignited significant interest in TRX, pushing its value higher.
TRON Founder Stirs Hype for TRX
Justin Sun, the founder of TRON, has been actively engaging with the community to build excitement around SunPump. In a recent post on X (formerly Twitter) dated August 19, Sun mentioned that "several major meme community leaders" are interested in transitioning to the TRON network, though he did not disclose specific names. Should these communities make the move, TRON could see a significant uptick in transaction volume, which has already surged over 1045% since SunPump’s beta launch on August 13. Data from IntoTheBlock also indicates a 10% increase in the number of daily active addresses on the network.
Amid the positive momentum, there are signals that TRX may be overbought. In Q2 2024, TRON processed $1.25 trillion in transaction settlements, accounting for one-third of the total settlement volume recorded by Visa during the same period. This has contributed to the optimistic sentiment around TRX. Additionally, TRON's 30-day revenue has surpassed Ethereum's protocol revenue by 230%, pushing the price of TRX closer to its 2021 all-time high—now only 31.3% away from that level.
However, the token’s current price is above the upper Bollinger Band at $0.1532, indicating that it is trading outside its usual range. The Relative Strength Index (RSI) for TRX stands at 79.09, well above the 70 threshold, signaling strong upward momentum but also suggesting that a market correction or consolidation could be imminent.
Conclusion
While TRX’s recent surge reflects strong buyer interest and bullish market conditions, the overbought indicators suggest that investors should be cautious. The token’s position above the Bollinger Band and its high RSI indicates potential resistance or a pullback before any further upward movement. As the memecoin hype continues, TRX’s performance will depend on how the market reacts to these signals and whether the anticipated community migrations to TRON materialize.
Usman Salis
