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After an explosive uptrend accounting for 290% in 10 days, will the pullback phase extend below $0.035 in SUN?
SUN, the native token of Sunpump, a new Tron-based platform for meme coins, is showing exponential gains. Over the last ten days, SUN has increased in value by almost 300% and reached almost $400 million in market cap.
Will SUN maintain a bullish trend as the market recovery gives the Tron ecosystem an additional push?
Catalysts Behind SUN Uprising
With significant growth in the SUN meme coins ecosystem, the $10 million fund from Tron to enhance liquidity has been a key catalyst. The incentive program aimed at boosting the meme coins ecosystem continues to drive this expansion.
Currently, the total amount of USDT on TRON stands at $61.7 billion. Additionally, the recent issuance of one billion USDT tokens on August 20 over the Tron network further increases its dominance.
Explosive Run by SUN
In the 4-hour chart, the bull run in SUN shows a higher high formation in a linear trend from the bottom level of $0.0089. The uptrend peaked at $0.044 yesterday and currently trades at $0.03569 with a 24-hour pullback of 9.50%.
The pullback phase forms a streak of bearish candle concluding near $0.035. Thus, an underlying bullish cushion absorbing the increased supply increases the bounce back chances.
With the cushioning at $0.035 absorbing increased supply, lower price rejections in the last few candles arose. In the 1-hour chart, a consolidation is visible as the supply run fizzles out. Hence, the range breakout event will be a decisive trendsetter.
Support Levels for SUN
The crucial moving averages 50 (green), 100 (red), and 200 (yellow) in the 4-hour chart maintain a bullish alignment. Further, the upside movement in the MAs increases the chances of dynamic support providing a launchpad.
Based on the Fibonacci levels, the next support level stands at the 23.60% Fibonacci level of the uptrend at $0.03376. Further, in case of an extended pullback, the next support levels for SUN are at 38.20% and 50% level at $0.029 and $0.025, respectively.
Behind SunPump
Sunpump was launched by Justin Sun, over Tron, to boost the meme coins and meme community over the Tron Network. With the aim to eventually expand the TRON network with additional users and increased activity, SunPump is achieving its goal.
With total accounts over the network exceeding 250 million, transactions and TVL are skyrocketing. As the TVL over the TRON network is close to hitting $25 billion, the market cap is close to reaching $15 billion.
With the evident boost and increased social dominance, Tron is ready to rise ranks in the crypto industry as it surpasses Toncoin.