Tron [TRX] retracement on the way? Memecoin mania lends support to price rally
- Tron founder outlines a plan to take advantage of prevailing memecoin excitement.
- TRX on a retracement path after a bullish performance in the first week of May.
The Tron [TRX] network is looking to capitalize on the recent memecoin hype. There was a lot of excitement in the memecoin segment as the rest of the market continued to slow down.
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Tron’s founder, Justin Sun, recently made an announcement revealing his company’s strategy to secure a bigger piece of the memecoin pie. The statement revealed that the network aims to incentivize the creation of more memecoins by offering funding to developers.
Tron will also collaborate with major exchanges, including Poloniex and Huobi. Tron’s goal is to facilitate easy and early access to memecoins. Timely development addresses one of the most common recent problems, which is the availability of multiple scam memecoins alongside legitimate ones. Tron will be addressing such challenges with this memecoin program.
Attention meme coin developers! Join #TRON and #BitTorrent with your meme coins, and benefit from our funding support of up to $1 million to reimburse your trading gas fees. Furthermore, top exchanges like @HuobiGlobal and @Poloniex will prioritize the listing of your meme coins. https://t.co/gISRGYEUv3
— H.E. Justin Sun 孙宇晨 (@justinsuntron) May 7, 2023
Can TRX benefit from budding memecoin optimism?
TRX is among the few cryptocurrencies that pulled off a significant upside since the start of May. However, it experienced some sell pressure over the weekend after briefly crossing into overbought territory.
TRX exchanged hands at $0.069 after a bit of a weekend slide, although it had fallen by less than 3%. A sizable market reaction may curtain the potential downside and perhaps allow the bulls to regain control. But some of Tron’s metrics point to a different potential outcome.
A look at TRX’s market cap confirmed recent significant outflows. Meanwhile, on-chain volume continued to drop, as has been the case since the start of May.
The lack of a volume spike in the last few hours confirms the market’s response or lack there of, to Tron’s memecoin pursuits. In addition, investor sentiment remains low according to the weighted sentiment.
How much are 1,10,100 TRXs worth today?
Despite the above findings, there is one noteworthy upside. Tron’s development activity metric showed signs that activity was rebounding after the previous downside seen since the last week of April. A stronger recovery backed by memecoin-related hype might be enough to also inject some investor excitement into TRX.
The memecoin hype may only come into play if Tron’s plan attracts more participation from developers. As such, the subsequent impact might only be evident in the mid to long term.