Tron price went parabolic in the overnight session, making it the second best-performing cryptocurrency after Reserve Rights (RSR). The TRX token also soared after Justin Sun predicted that it would have a strong performance like Ripple and Stellar Lumens.
Crypto Analysts see Tron price hitting $1
Tron price continued its strong rally, pushing its market cap to over $26 billion. It has now become the tenth-biggest cryptocurrency, passing other popular coins like Avalanche, Toncoin, and Shiba Inu.
Tron’s surge coincided with the start of the altcoins season, with the closely watched index rising to over 80. Similarly, the crypto fear and greed index rose to the extreme greed area of 82. In most cases, cryptocurrencies like Tron and Ripple do well when the two indexes are rising.
Tron price also jumped as the total market cap of all SunPump tokens jumped. Data by CoinGecko shows that the market cap rose by almost 20% to over $275 billion. The biggest of these coins are Sundog, Tron Bull, Tron Bull Coin, and Suncat.
Meanwhile, data by DeFi Llama shows that Tron overtook Solana to become the second biggest blockchain in the DeFi industry. Its total value locked jumped to over $10 billion, much higher than Solana’s $8.85 billion.
Tron’s open interest in the futures market also went parabolic, reaching a high of $302 million, the highest figure since 2022.
Therefore, some analysts believe that Tron has what it takes to jump to $1 as some coins like Ripple have done recently. For TRX to hit $1, it needs to rise by about 233%, which is possible if the crypto bull run continues.
Tron price gets severely overbought
The weekly chart shows that the TRX price is on track for its best week on record. It recently jumped above the crucial resistance at $0.1776, its highest level in April 2021. It was also the upper side of the cup and handle pattern, a popular bullish sign.
The coin has jumped above all moving averages. However, Tron price has also become severely overbought, with the Relative Strength Index (RSI) rising to 88 and the Stochastic oscillator nearing 100.
Measuring the depth of the cup shows that it is about 70%. If we measure that same distance from the upper side, we see the target at $0.30, which the pair has reached.
Therefore, there is a risk that the oversold Tron price could have a sharp reversal and drop to $0.1800. This decline could also happen because of mean reversion, where the coin drops to its mean price.
