Sun Token price continued its upward momentum on Friday, Aug. 23, making it one of the top-performing cryptocurrencies this week.

Sun Token’s Impressive Surge

Sun Token surged to a high of $0.028, marking its highest level since December 2021 and a remarkable 526% increase from its lowest point in 2023. Its market capitalization has seen significant growth, rising from $101 million on Aug. 17 to over $276 million.

The surge in Sun Token’s price mirrors the performance of other tokens within Justin Sun’s ecosystem. Tron rose to $0.1660, its highest level since May 2021. Similarly, BitTorrent soared to $0.0000010, and Just (JST) reached $0.034, which is 40% above its lowest level this year.

Factors Behind the Surge

The price surge of SUN is supported by the recovery in the total value locked (TVL) in its DeFi platform, which has reached $758.7 million, the highest level since November 2022.

Traders are optimistic that Sun’s ecosystem could experience robust growth, similar to Solana’s Raydium network, as its meme coins gain popularity. During that period, Raydium became a top-ten Decentralized Exchange, handling billions of volumes each month.

According to recent data, the total volume handled in Tron’s DEX ecosystem rose by over 558% in the last 7 days to a record high of over $915 million. Most of this volume was in SunSwap V3, which handled $140 million, followed by V2, which processed $42.60 million.

SUN also benefited from comments made by Federal Reserve Chair Jerome Powell at the Jackson Hole Symposium. Powell hinted that the Fed might start cutting interest rates in September, which spurred further gains in the crypto market, with Bitcoin rising to $62,000.

Technical Analysis

Sun Token continued its rally for the second consecutive day, crossing the crucial resistance point at $0.018, its highest swing since March 14. It has soared above all moving averages and the SuperTrend indicator.

The Average Directional Index (ADX) has risen to 52, its highest level since June 6. An ADX above 50 typically indicates strong momentum. Additionally, the Relative Strength Index (RSI) and the Stochastic Oscillator have both entered extreme overbought territory. Given these signals, SUN is likely to continue rising in the short term, although a reversal may occur as investors begin to take profits. The key psychological level to watch will be $0.030.

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