Tron price remains in a bear market after dropping 47% from its highest level in 2024, but three key catalysts could push it higher in the near term.
Tron (TRX) fell to $0.2395 on Thursday, bringing its market capitalization to $20 billion. Its recent decline has mirrored broader altcoin weakness, with most digital assets pulling back this year.
Tron has three potential factors that could drive its price higher in the near term. First, the Tron meme coin ecosystem is showing signs of recovery. Sundog, the largest meme coin on the network, surged 77% in the last 24 hours, bringing its market capitalization to $69 million.
The price of Tron Bull Coin increased by 38%, while Suncat gained 24%. These rallies boosted their combined market capitalization by 57% in the past 24 hours to nearly $90 million. Additionally, cumulative fees in the SunPump ecosystem to $5.65 million.
Second, Tron’s ecosystem remains strong. Tron has become the leading blockchain for Tether transactions due to its lower fees compared to Ethereum. Tronscan data shows that the network processed $65 billion in Tether transactions on Wednesday, with daily transaction volumes often exceeding $100 billion.
This transaction growth has helped make Tron one of the most profitable blockchains in the cryptocurrency industry. Tron has generated more than $441 million in fees this year and $2.4 billion over the past 12 months, surpassing Ethereum (ETH) in profitability.
TRX price has strong technicals
Third, Tron’s technical indicators suggest a potential rebound. Despite its sharp decline, TRX has remained above the 200-day moving average, indicating that the recent pullback may be part of a mean reversion—a process where an asset retraces toward its moving averages.
Additionally, Tron is forming a falling wedge chart pattern, a commonly recognized bullish reversal signal. This pattern consists of two declining and converging trendlines, with a breakout typically occurring as they near convergence.
Tron has also developed a small inverse head and shoulders pattern, another bullish indicator. If this setup holds, the next key level to watch would be $0.4500, representing an 85% increase from the current price. However, a drop below the 200-day moving average at $0.2075 would invalidate this bullish outlook.
