Tron price continued its strong momentum this week and reached an all-time high, pushing its market cap to over $17 billion.
Tron (TRX) surged to a record high of $0.2068, bringing its year-to-date gains to over 80%, making it one of the top-performing coins.
This rally coincided with the ongoing surge of other popular cryptocurrencies, with Bitcoin (BTC) approaching the crucial resistance level of $100,000 for the first time ever.
Tron is also rising as investors anticipate that a Trump-led Securities and Exchange Commission will be friendly to cryptocurrencies. This is notable for TRX since the agency previously sued Sun for fraud and other securities violations. As such, there are odds that the agency will drop these charges as it resets its approach to cryptocurrencies.
There are other reasons why the Tron price may surge by 400% and hit the crucial level of $1. First, Tron has one of the best utilities in the crypto industry due to its role in stablecoin payments. Data on TronScan shows that Tron’s network handled Tether tokens worth over $196 billion on Nov. 22. Its average daily volume is often higher than that of Visa.
Second, Tron has been a highly deflationary token whose supply has been in a downward trend. As shown below, TRX had over 101 billion tokens in circulation in 2022, a figure that has dropped to 86 billion. This trend is expected to continue as its ecosystem growth accelerates.
Third, Tron is one of the most profitable players in the blockchain industry. Data from TokenTerminal shows that it has made over $1.75 billion in revenue this year, second only to Ethereum and Tether.
Additionally, Tron has a young meme coin ecosystem that is growing. As Solana has shown, these meme coins can make a blockchain highly valuable.
Tron price has strong technicals
Tron also has strong technicals that could push it higher to $1 in the coming months. On the daily chart above, the coin moved above the key resistance level of $0.1800 last week. This was an important price since it was its previous all-time high. It was also the upper side of the ascending channel shown in blue.
Tron has also moved above the upper side of the cup and handle pattern that has been forming for three years. Therefore, there is a likelihood that the TRX price will continue rising and hit the psychological level of $1 in the coming months. To achieve this, it would need to rise by 400%, which is possible in the crypto industry.
Read the full article here