- Summary:
- Sun token price has risen sharply, helped by the sentiment around Justin Sun's newly-launched SunPump platform, but it might not hold.
Sun token price extended its hot streak, gaining 7.7 percent as of this writing on Thursday, with the price at $0.0173. SUNUSD rose on Wednesday to its highest level since April 2022, thanks largely to the hype surrounding Justin Sun’s new meme coin deployment platform, SunPump. Sun token has risen by about 86 percent in the last seven days, underlining the strong bullish sentiment.
Tron Founder Justin Sun led the launch of SunPump on August 9, with the aim of rivaling Solana’s Pump.fun. The latter’s meme coin launch platform is largely responsible for Solana ecosystem’s massive growth in 2024. SunPump has seemingly lived up to the billing, with more than 18,000 meme coins churned out since its launch.
With it, the Tron blockchain has experienced a spike in liquidity inflows, with the value of its transactions up by 5.87 percent, compared to Ethereum’s gains of 0.74 percent and Solana’s 2.97 percent in the last week, according to DeFiLlama. The traffic flowing through the SunPump platform was so much that it slowed down for some minutes on August 20.
Sun announced on August 20 that he was considering lowering transaction fees on the Tron Blockchain to incentivise investor activity in the ecosystem. SunDog, another Tron-based meme coin launched on SunPump has risen by 225 percent since it launched a week ago. The success of the SunPump platform could help drive up Sun token price to higher levels in the coming days. Also, it has helped boost the sentiment around cryptocurrencies, with Bitcoin returning above the $60 mark on Thursday.
That said, many of Solana’s Pump.fun meme coins have recently experienced steep declines, sending a warning signal over the sustainability of the current Tron-driven frenzy. However, SunPumP stands to benefit from Sun’s Meme Ecosystem Boost Incentive Program whose $10 million fund could help cushion some market shocks.
Sun token momentum
Sun token price has broken above the upper Bollinger Band on the chart shown below, showing that the upside momentum currently prevails. Note that that level is just above the 0.0190 psychological mark, which could potentially set it up as a support level. Also, the upside view is supported by the RSI which is quite strong, at 71.
Key support and resistance levels
As seen on the 30-minute chart below, Sun token price will likely extend gains if it stays above the pivot mark at 0.0226. With the buyers in control, the immediate resistance will likely be at 0.0240. However, if the buyers stay in control for longer, they could clear that barrier and take SUNUSD to test 0.0252.
On the other hand, a move below 0.0226 will signal the onset of bearish control. In that case, the resulting momentum could establish the first support at 0.0200. However, extended control could result in a stronger downside momentum to invalidate the upside narrative, break below the first support and test 0.0175.
