Tron price moved sideways on Monday morning as cryptocurrency prices remained in a tight range. TRX was trading at $0.060, where it has been in the past few days. Notably, this consolidation happened even as SUN price surged to the highest point since June this year.
SUN price spikes
Tron is a leading blockchain project created by Justin Sun. Today, it has become one of the biggest operating systems in the industry, processing billions of dollars worth of transactions every day. It has also become the second-biggest smart contract platform for developers building DeFi projects after Ethereum,.
SUN.io is the biggest DeFi platform in its ecosystem with a total value locked (TVL) of more than $1.1 billion. According to its platform, the TVL of SunSwap pools has jumped to more than $711 million while the TVL of farming pools has rise to $1.05 billion. Some pools earn an APY of over 50%.
SUN price went parabolic on Monday as investors cheered the growing ecosystem. For one, recent data show that SUN is one of the top ten fastest-growing DEXes in the world. Also, the creators continued burning the tokens. As of September 9, the developers had burned over $405k worth of tokens and they plan to continue the burning process.
Tron price has also wavered as investors focused on a proposed bill that could ban algorithmic stablecoins in the US for two years. This is notable since Tron runs USDD, one of the biggest algorithmic coins in the world. However, there is a likelihood that this bill will not see the light of the day since Washington politicians have gone to their states ahead of the mid-term elections.
Tron price prediction
The daily chart shows that the TRX price has been in a tight range in the past few weeks. This is similar to Bitcoin, which has remained at around $20,000 for weeks. It has moved to the 25-day and 50-day moving averages while the MACD has moved below the neutral point. A closer look shows that the coin has formed what looks like a head and shoulders pattern.
Therefore, there is a likelihood that Tron price will soon have a bearish breakout in October. If this happens, the next key support level to watch will be at $0.050, which is about 20% below the current level. A move above the resistance at $0.065 will invalidate the bearish view.