Tron’s Price Hits a Low, But Justin Sun Remains Bullish

Tron’s price has fallen to its lowest level in over four weeks, with the TRX token dropping below $0.22. Despite this decline, founder Justin Sun is urging investors to buy the dip, maintaining his long-held view that Tron remains highly undervalued.

Market Performance and Fundamentals

Tron’s market capitalization has fallen from over $26 billion to $19 billion, with the token’s price down more than 50% from its December high. However, the network’s strong fundamentals suggest that it may be due for a rebound. Tron ranks as the third-largest player in decentralized finance after Ethereum and Solana, with a total value locked of $6.69 billion.

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

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Decentralized Exchange and Staking Yields

Tron also ranks high in the decentralized exchange industry, with its DEX protocols handling almost $100 billion in volume since inception. In the last seven days, they processed tokens worth over $782 million, making it the 10th chain.

Tron offers competitive staking yields, making it an attractive option for holders. The network’s staking yield is currently 4.52%, supported by rising network fees and a declining circulating supply.

Key statistics include:

  • Monthly active addresses: over 2.17 million
  • Transactions: remained steady in the past few months
  • Staking yield: 4.52%
  • Fees collected in the last 12 months: $2.21 billion

Price Analysis

The daily chart shows that Tron has dropped from $0.4487 on Dec. 4 to $0.2245 amid the broader crypto sell-off. TRX has moved below its 50-day and 100-day weighted moving averages, while key oscillators such as the MACD and Relative Strength Index (RSI) have signaled bearish momentum.

However, Tron has formed a bullish double-bottom pattern at $0.2245, with the neckline at $0.2760. A double-bottom pattern often precedes a bullish breakout. If TRX remains above the $0.2245 support level, it suggests that the double-bottom is holding, which could lead to a recovery.

For the latest news and analysis on Tron and other cryptocurrencies, visit Global Crypto News.

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