Sun Token has catapulted to the forefront of the top 300 cryptocurrencies with an impressive monthly surge, but a drop in open interest and volume suggests its rally may be losing steam.
Justin Sun’s cryptocurrency, Sun Token (SUN), has been one of the best performers over the past 30 days, experiencing a 240% increase as investors responded positively to the expansion of the ecosystem.
SUN serves as a utility token for Solar pumpa meme coin launchpad on the Tron network, similar to Solana’s Pump.fun meme coin launcher.
Originally launched over four years ago as an alternative to Bitcoin, SUN Token faced a significant downturn in 2021 due to an oversupply issue. This led to a shift in focus towards decentralized finance on platforms like Justswap and Justlend. With its new use cases, SUN is now targeting a $1 billion market cap.
On August 25, Sun Token reached a peak of $0.0435, its highest value since December 2021, representing an impressive 731% increase from its lowest point in 2023. Its market capitalization has also seen significant growth, rising from $101 million on August 17 to over $326 million.
Justin Sun has played a crucial role in driving this surge by implementing strategies such as capitalizing on memecoins and adjusting network fees. His latest article, Solar pumpquickly surpassed Solana-based Pump.fun in daily active users and revenue as of August 21.
Recently, Justin Sun addressed critics who made negative statements about the SUN token via an X mail On his account, he responded to the criticism by offering to buy SUN tokens from these people at a rate of $0.03 each.
Traders are optimistic that Sun’s ecosystem could be a key driver for growth, drawing parallels with Solana’s Raydium network, which saw its own memecoins gain popularity. During that period, Raydium became a top ten decentralized exchange, handling billions in trading volume each month.
SUN Price Action
Despite being the top gainer over the past 30 days, Sun Token is down 7.2% over the past 24 hours. The crypto asset’s 24-hour trading volume is down 30% and hovers around $127 million.
Data According to Coinglass, SUN’s total open interest has dropped by 17.89% over the past day, from $84.64 million to $69.51 million, reflecting waning trader interest as the broader cryptocurrency market saw a 2.1% drop, bringing its total value to $2.11 trillion.
Data from the market intelligence platform also shows that SUN’s aggregate funding rate is currently at -0.0348%, indicating bearish sentiment among traders regarding SUN’s price outlook.
The average directional index has risen to 61.05, the highest level since June 6, suggesting strong momentum, as typically indicated by an ADX above 50.
Meanwhile, the Relative Strength Index has entered extreme overbought territory. This suggests that while SUN may continue to rise in the near term, a reversal could be on the horizon as investors begin to book profits.
The crucial level to watch out for is $0.030 – if SUN price falls to this level, it could present a buying opportunity before a potential rally. However, if it fails to hold this level, the price could drop to around $0.013. Conversely, if the momentum continues, SUN could rise to $0.050.
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