SUN, the native token of Sunpump, a new Tron-based platform for meme coins, has been on a tear. After a staggering 290% increase in just 10 days, the token’s market cap has surged to nearly $400 million. But as the dust settles, the question remains: will the pullback phase extend below $0.035?
Catalysts Behind SUN’s Uprising
Several factors have fueled SUN’s meteoric rise. The $10 million fund allocated by Tron to enhance liquidity has been a significant catalyst. Additionally, the ongoing incentive program aimed at boosting the meme coins ecosystem has played a crucial role.
The growth of the SUN meme coins ecosystem has also been bolstered by the increasing dominance of USDT on the TRON network. With a total USDT supply of $61.7 billion and the recent issuance of one billion USDT tokens, TRON’s position as a leading blockchain for stablecoins has strengthened.
SUN’s Technical Analysis
Analyzing SUN’s technical chart, we see a clear bullish trend in the 4-hour timeframe. The token’s price has formed a higher high pattern, indicating a continuation of the uptrend. However, the recent pullback, which has brought the price to $0.03569, raises concerns about a potential extended decline.
While the pullback phase has formed a series of bearish candles, it’s important to note that the price has found support at the $0.035 level. This suggests that there may be a buying opportunity at this price point.
In the 1-hour timeframe, a consolidation phase is evident as the momentum of the uptrend has slowed. A breakout from this consolidation period will likely determine the direction of the next move.
Support Levels and Outlook
Key support levels for SUN include the 23.60% Fibonacci level at $0.03376, the 38.20% Fibonacci level at $0.029, and the 50% Fibonacci level at $0.025. If the pullback extends beyond these levels, it could signal a more significant correction.
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Sunpump, the platform behind SUN, has been instrumental in driving growth on the TRON network. With over 250 million total accounts and increasing transaction volume, TRON is poised to become a major player in the cryptocurrency space.
While SUN’s recent performance has been impressive, it’s essential to approach the market with caution. The potential for a pullback below $0.035 cannot be ruled out. However, the underlying bullish trend and support levels suggest that a further decline may be limited. Investors should closely monitor technical indicators and market sentiment to make informed decisions.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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