TRX price double bottoms as Justin Sun recommends buying the dip

Tron’s price continued its strong downtrend, reaching its lowest level in more than four weeks as founder Justin Sun urged investors to buy the dip.

Tron (TRX) is down more than 50% from its December high to $0.2200. This decline increased TRX’s market value from $26 billion to $19 billion.

In an X post on Monday, Sun recommended buying the dip, maintaining his long-held view that Tron remains significantly undervalued.

Sun’s uptrend is supported by Tron’s strong fundamentals. The network ranks as the third largest player in decentralized finance after Ethereum and Solana, with a total locked value of $6.69 billion.

Tron is also the market leader in Tether transactions due to its more affordable transaction costs compared to Ethereum. On Monday, Tron’s USDT transactions rose 91% to $137 billion, making Tron one of the largest payment processors in the world. The Tron blockchain currently has over 59.2 million USDT holders.

Buy the dip and focus on building! 2025 will be a great year!

— HE Justin Sun 🍌 (@justinsuntron) January 13, 2025

Tron also ranks high in the decentralized exchange industry. Since its inception, DEX protocols have handled almost $100 billion in volume. They became the 10th chain by processing tokens worth over $782 million in the last seven days.

Tron is also very popular among users as monthly active addresses and transactions have remained stable over the past few months. It has more than 2.17 million active addresses, making it the second largest chain after Solana, which has 4.27 million.

Tron active addresses and transactions | Source: CryptoQuant

Tron offers competitive staking returns, making it an attractive option for its holders. The network’s staking yield currently stands at 4.52%, supported by increasing network fees and decreasing circulating supply.

According to TokenTerminal, Tron collected $2.21 billion in fees in the last 12 months. It even flipped Ethereum this year, earning $116 million versus Ethereum’s $60 million. Tron’s circulating supply continues to decline, rising from 88.1 billion in January last year to 86.17 billion today.

Tron price analysis TRX price chart | Source: crypto.news

The daily chart shows Tron falling from $0.4487 on December 4 to $0.2245 amid the broader crypto sell-off. As TRX fell below the 50-day and 100-day weighted moving averages, key oscillators such as the MACD and Relative Strength Index (RSI) signaled a bearish trend.

However, on a positive note, Tron formed a double bottom formation at $0.2245, with the neckline at $0.2760. A double bottom formation usually occurs before an uptrend.

If TRX stays above the $0.2245 support level, this could indicate that the double bottom is holding, which could lead to a recovery. However, a break below this level could send TRX lower to $0.20, in line with the ascending trend line connecting the lowest swings since June of last year.