Tron Sees 5% Uptick Amid SunPump Fair Launch: Is a Yearly High For TRX on the Horizon?
Tron continues to rise as a new memecoin platform launches. Can it reach a new yearly high?
Key Takeaways
- TRX shows potential for a continued uptrend post-August dip.
- SunPump platform boosts TRX with memecoin ecosystem support.
- TRX could reach a new yearly high by October.
Tron’s price recovery continues to gain momentum, with the token surging to $0.13 on Sunday, Aug. 11.
By Aug. 13, TRX experienced a 5% increase, eclipsing its previous high. This fueled optimism among investors and hinted at a looming rally.
The recent launch of SunPump, a platform designed to foster Tron’s burgeoning memecoin ecosystem, is likely a key driver behind this upward momentum.
As the community takes notice of Tron’s newfound momentum, many are left wondering: can this uptrend propel Tron to new yearly highs?
SunPump Platform
Tron has officially thrown its hat into the meme coin ring with the launch of SunPump , a platform that looks to revolutionize the creation and trading of memecoins on its Layer-1 network.
Inspired by Solana’s pump.fun, SunPump is all about simplicity. It leverages a straightforward Bonding Curve mechanism to enable users to mint their own meme coins easily. With a nominal creation fee and a 1% trading fee, the barriers to entry are tantalizingly low.
But what sets SunPump apart is the liquidity support it’s receiving from the TRON team itself. A hefty $12,000 worth of TRX is being contributed for on-chain burning, a move sure to inject some serious momentum into the platform.
And, if TRON’s founder Justin Sun is to be believed, we’re on the cusp of the “season of memes.”
TRX Price Analysis
TRX began its upward trajectory in November 2022, trading at approximately $0.05. By Feb. 29, 2024, it had surged to nearly $0.15, marking an impressive gain of over 200%. However, this peak was only marginally higher than its previous high of $0.11 on Nov. 11, 2023, suggesting possible market weakness.
Following its peak, TRX’s price declined by 30%, reaching a low of $0.10 on April 19. It then made a lower high of almost $0.13 before experiencing a sharp downward move, indicating a potential downtrend.
The daily RSI approached the overbought zone at 67 on May 12, and a death cross formed in the MACD on May 19, further signaling a bearish trend. Despite this, TRX continued its upward trajectory, revisiting its previous high on July 14, and was rejected.
But on its next downturn, it maintained above its ascending support and is now back up again, presenting two possible scenarios ahead.
Bearish scenario
TRX may have completed its larger five-wave increase on Feb. 29, signaling the start of a broader corrective phase. The initial downtrend until April 19 could represent wave A, with the high on July 14 marking wave B.
Using the Fibonacci extension tool, the length of the first downtrend projects a target of $0.092 at the upper end of the horizontal support zone, while wave C could extend to the 1.618 Fibonacci level at $0.081.
This would represent a 0.5 retracement from the more significant five-wave impulse, a reasonable level for the correction to conclude. However, confirmation of these lower price targets will depend on whether TRX breaks below its April 19 low, affirming the downtrend. The potential for a new rally remains if TRX holds above this level or slightly higher.
Bullish Scenario
According to the bullish scenario, the higher degree five-wave impulse from November 2022 is now developing its final wave 5. In this scenario, the wave 4 correction ended on its April 19 low, from which its final wave started.
We saw the formation of an ascending channel, whose support held on the recent Aug. 5 low, leaving the possibility of another uptrend to its resistance. If this is true, and another uptrend continues, TRX could reach a new yearly high of $0.153 in late September or early October.
TRON Price Defies Market Trends with 10% Rise in June- TRX to Reach New Yearly Highs?
