TRX jumps 12% amid SunPump memecoin hype

TRX, the native token of the TRON blockchain, has become the biggest gainer in the cryptocurrency market with a 12% increase in the last day.

The TRON (TRX) price increased by 10.6% on August 21 to change hands at $0.1594, a high not seen since April 16, 2021. The token’s daily trading volume also increased by 121% to hover around $1.92 trillion, according to Crypto.news data.

TRON 24-hour price chart – August 21 | Source: crypto.news

Additionally, TRX’s market cap increased to $13.89 billion, making it the 11th largest cryptocurrency according to CoinGecko.

This surge appears to be fueled by the launch of SunPump, TRON’s attempt to cash in on the memecoin craze. According to Dune Analytics, over 18,000 memecoins have been created on SunPump since its launch, generating a total revenue of 7,080,777 TRX (roughly $1.12 million) as of press time.

Today, I spoke with several major meme community leaders about the meme ecosystem on Tron. They said that they plan to bring millions of users 🤯 to the Tron community and are eager to join the Tron ecosystem as soon as possible. They are already here—how about you? TO THE SUN🌞

— HE Justin Sun 孙宇晨(hiring) (@justinsuntron) August 19, 2024

Meanwhile, TRON founder Justin Sun has been actively building anticipation in the community. In an X post on August 19, Sun revealed that “several major meme community leaders” were interested in moving to TRON, without naming them.

If these communities switch to TRON, the network could potentially experience a surge in transaction volume, which has increased by over 1045% since SunPump’s beta launch on August 13. The total number of daily active addresses has also increased by over 10%, according to data from IntoTheBlock.

TRON 7-day volume chart | Source: IntoTheBlock Overbought signals emerge as TRON’s volume increases

Among other positive developments, the TRON blockchain processed $1.25 trillion worth of transactions in Q2 2024, Token Terminal reported, accounting for a third of Visa’s total transaction volume during the same period, reinforcing the optimistic sentiment.

Additionally, the 30-day revenue statistics are also quite positive for TRON, which has surpassed Ethereum’s protocol revenue by 230%. These developments have pushed TRX’s price towards its all-time high in 2021, with the token only 31.3% short of reaching that level.

TRX’s current price is slightly above the upper Bollinger Band of $0.1532, which suggests that it is trading outside of its typical range and may be overbought. The recent rally has pushed TRX beyond the upper band, suggesting a potential resistance or pullback.

TRON Bollinger Bands and RSI chart | Source: crypto.news

TRON’s Relative Strength Index is above the 70 threshold at 79.09, confirming strong upward momentum but also indicating a possible market reversal or consolidation. Overall trading volume for TRX has also increased along with the price, indicating strong buyer interest. Still, with the RSI in the overbought territory and the price having broken out of the Bollinger Band, caution is advised as a correction or consolidation may occur before the next move.

Given these technical factors, the market could be preparing to either consolidate gains with sideways movement or face a pullback, so it is critical to monitor for signs of weakening momentum or increasing selling pressure.