TRON (TRX) Jumps 12% as SunPump Memecoin Hype Heats Up

TRX, the native token of the TRON blockchain, has jumped 12% over the past day, making it the top gainer in the crypto market.

TRX, the native token of the TRON blockchain, soared by 12% on Aug. 21, emerging as the top gainer in the crypto market over the past day.

At the time of writing, TRX is trading at $0.1594, having surged 10.6% over the past 24 hours, making it the biggest gainer among the top 100 cryptocurrencies by market capitalization. The token’s daily trading volume also jumped 121% to stand at around $1.92 trillion, according to data from crypto.news.

TRX’s market capitalization also surged, now ranking 11th largest among all cryptocurrencies with a market cap of $13.89 billion, according to CoinGecko.

The surge appears to be fueled by the launch of SunPump, TRON’s attempt to capitalize on the memecoin hype. According to Dune Analytics, more than 18,000 memecoins created on SunPump have collectively raked in 7,080,777 TRX (roughly $1.12 million) in total revenue as of the time of writing.

TRON founder Justin Sun builds anticipation for meme communities joining the network

Meanwhile, TRON founder Justin Sun has been actively building anticipation among the community with the possibility of major meme communities joining TRON.

In an X post on Aug. 19, Sun stated that several “major meme community leaders” had expressed interest in moving to TRON, although he did not name the communities.

Should these communities decide to migrate to TRON, the network could potentially see a rise in transaction volume, which has surged over 1045% since the beta launch of SunPump on Aug. 13. The total number of daily active addresses has also increased by over 10%, according to data from IntoTheBlock.

As TRON transaction volume soars, overbought signals loom on the horizon

Among other positive developments, the TRON blockchain processed transaction settlements amounting to $1.25 trillion in Q2 2024, according to Token Terminal, which accounts for one-third of the total settlement volume recorded by Visa during the same period, adding to the optimistic sentiment around the network.

Moreover, 30-day revenue statistics are also highly positive for TRON, which managed to outpace even Ethereum’s protocol revenue by an impressive 230%. These developments have pushed the price of TRX closer to its 2021 all-time high, with the token now trading at a discount of just 31.3% to that level.

However, technical analysis suggests that TRX may be facing some resistance or preparing for a pullback before making its next move. TRX is currently trading slightly above the upper Bollinger Band at $0.1532, indicating that it is trading outside its typical range and may be overbought. The recent surge has pushed TRX beyond the upper band, suggesting potential resistance or a pullback.

TRON’s Relative Strength Index is at 79.09, above the 70 threshold, which confirms strong upward momentum but also signals a possible market reversal or consolidation. The overall trading volume for TRX has also increased alongside the price, indicating strong buyer interest. Still, with the RSI in overbought territory and the price exceeding the Bollinger Band, caution is advised as a correction or consolidation may occur before the next move.

Given these technical factors, the market may be preparing to either solidify its gains with some sideways movement or face a pullback, making it critical to monitor for signs of weakening momentum or increased selling pressure.

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