Here’s why Justin Sun’s Tron could soar to $1

Tron price continued its strong momentum this week, reaching a new all-time high, pushing its market cap to over $17 billion.

Tron (TRX) rose to a record high of $0.2068 and has become one of the best-performing cryptocurrencies, expanding its year-to-date gains by over 80%.

This rally coincided with the continued rise of other popular cryptocurrencies; Bitcoin (BTC) approached the critical $100,000 resistance level for the first time.

Tron is also on the rise as investors predict that the Trump-led Securities and Exchange Commission will be friendly to cryptocurrencies. This is notable for TRX because the institution has previously sued Sun for fraud and other securities violations. Therefore, there is a possibility that the agency will drop these charges as it resets its approach to cryptocurrencies.

There are other reasons why the Tron price increased by 400% and reached the critical level of $1. First of all, Tron has one of the best services in the crypto industry due to its role in stablecoin payments. Data from TronScan shows that the Tron network processed over $196 billion worth of Tether tokens on November 22. Its average daily volume is generally higher than Visa’s.

Second, Tron has been a highly deflationary token whose supply has been trending downward. As shown below, TRX had over 101 billion tokens in circulation in 2022, which has dropped to 86 billion. This trend is expected to continue as ecosystem growth accelerates.

Tron tokens in circulation | source: Tronscan

Third, Tron is one of the most profitable players in the blockchain industry. Data from TokenTerminal shows that it has generated over $1.75 billion in revenue this year, ranking second after Ethereum and Tether.

Additionally, Tron has a growing young meme coin ecosystem. As Solana shows, these meme coins can make a blockchain extremely valuable.

Tron price has strong techniques Tron chart | Source: crypto.news

Tron also has strong technicals that could push the price to $1 in the coming months. On the daily chart above, the coin climbed above the key resistance level of $0.1800 last week. This was a significant price as it was an all-time high. It was also the upper side of the ascending channel shown in blue.

Tron also broke above the top of the cup and handle pattern that has been forming for three years. Therefore, there is a possibility that the TRX price will continue to rise in the coming months and reach the psychological level of 1 dollar. To achieve this, it needs to increase by 400%, which is possible in the crypto industry.