Tron (TRX) Shows Signs of Potential Price Recovery Amid Market Trends
The native token of the Tron network, TRX, has declined 47% from its peak in 2024, currently trading at $0.2395 with a market cap of $20 billion. Despite this downturn, three factors indicate a potential price rebound for TRX.
Key Catalysts for Potential TRX Recovery
- Growth in memecoins on the Tron network, highlighted by Sundog's 77% increase, bringing its market cap to $69 million.
- Positive performance from Tron Bull Coin and Suncat tokens, which rose by 38% and 24%, respectively, leading to a combined market cap of nearly $90 million.
- Increased user activity within the SunPump ecosystem, contributing to total fees of $5.65 million.
Historically, memecoin trends have positively impacted TRX prices. Additionally, Tron's blockchain efficiency is notable; it processed $65 billion in Tether transactions on one day alone, often exceeding $100 billion in daily volume. This has generated $441 million in fees year-to-date and $2.4 billion over the past year, surpassing Ethereum.
Despite current bearish conditions, TRX's support level remains above the 200-day moving average, suggesting a possible recovery. The formation of a 'falling wedge' pattern and an 'inverse head and shoulders' pattern indicates a potential rise to $0.4500, representing an 85% increase from current levels. However, falling below the 200-day moving average at $0.2075 could alter this outlook.
TRX/USDT 4H Chart. Photo: TradingView