Tron price forms a bearish flag as SunPump meme coins crash

Justin Sun’s Tron token is in a tight range as the ongoing crypto sell-off continues and Bitcoin falls below $60,000.

Tron (TRX) was trading at $0.1542, just a few points below this week’s high. It is the ninth largest cryptocurrency with a market cap of $13.3 billion, according to CoinGecko.

TRX has outperformed other top ten cryptocurrencies, gaining 0.97% over the past seven days. Bitcoin (BTC), Ethereum (ETH) and Solana (SOL) declined by 6.2%, 10.6% and 10.5% in the same period.

Tron’s ecosystem is not in great shape; Many of the meme coins in the recently launched SunPump ecosystem are experiencing double-digit declines. Sundog (SUNDOG), the largest token in the ecosystem, has fallen by approximately 30% in the last seven days.

Similarly, Tron Bull Coin, Muncat, Suncat and Vikita also dropped by more than 30% during the same period. The only SunPump meme coins that performed well were Tron Bull and Tron Beer, which were up 16% and over 40% respectively.

Other parts of the Tron ecosystem are not doing well. For example, the total value locked in the DeFi ecosystem dropped 6.8% to $7.6 billion in the last 30 days, making it the second largest network after Ethereum.

Tron’s DEX volume also increased to $425 million, making it the 9th largest player in the industry. It has been overtaken by newer chains like Sui and Base, which have processed $700 million and $4.5 billion in transactions in the last seven days.

Still, Tron has many positive aspects. Stablecoin has become the market leader in the payment industry. Data from TronScan shows that Tether transactions increased by 9.75% to $70 billion on October 2.

Tron is also one of the crypto industry’s most profitable chains, with over $1.37 billion in fees this year. Third-quarter revenue rose to $577 million, a figure higher than Bitcoin and Ethereum.

Tron price stopped Tron price chart | Source: TradingView

Tron rose to a record high of $0.1690 on August 26 and is down 8.83%. It remains above the 50-day and 25-day Exponential Moving Averages, which means the bulls are in control for now.

But signs suggest it is forming a bearish flag chart pattern, which is a popular risky sign. If this pattern works, Tron will likely slide into key support at $0.1450, the swing high in February this year.