3 Reasons Why Tron (TRX) Price is Rising Sharply Today

Tron (TRX) has emerged as one of the best-performing cryptocurrencies in the last 24 hours in an otherwise bearish crypto market. Notably, TRX’s price has increased by over 14.25% to reach approximately $0.16 on Aug. 21, its highest level since May 2021, thanks to the Tron ecosystem capitalizing on several key developments.

Justin Sun’s Legal Victory Against the SEC Turns Bullish for Tron

One of the primary catalysts behind TRX’s price surge is a recent legal victory for Tron’s founder, Justin Sun, against the U.S. Securities and Exchange Commission (SEC).

The SEC has been pursuing a lawsuit against Sun and the Tron Foundation, alleging that the sale of TRX constituted an unregistered securities offering, among other charges. In their latest maneuver, the SEC requested an expedited legal process, aiming to quickly resolve key procedural issues that could potentially cripple Tron’s operations in the U.S. market.

However, in a crucial ruling on Aug. 19, a New York Federal Judge denied the SEC’s request to accelerate the proceedings. The judge found that the SEC’s arguments—especially regarding the “common enterprise” aspect of the Howey Test—were not sufficiently compelling at this stage of the litigation.

This effectively slows down the SEC’s legal campaign against Tron, giving Sun and his legal team more time to mount a robust defense.

Moreover, Sun’s victory helps dispel some fears, encouraging retail and institutional investors to hold or even accumulate TRX, expecting the worst-case regulatory scenario to be avoided.

The SunPump Meme Coin Platform Launch Boosts TRX Demand

Another major factor driving TRX’s price is the launch of SunPump, a new meme coin platform on the Tron network.

The introduction of SunPump has coincided with a substantial increase in on-chain transactions atop the Tron blockchain. Notably, Tron’s network activity has spiked by 124%, with transaction volumes between $100 and $10,000 reaching $100 million, while transactions between $1,000 and $10,000 moving past $50 million.

This increase in transaction activity is a strong indicator of growing user engagement on the Tron blockchain. It directly correlates with higher demand for TRX tokens, as users are required to pay transaction fees.

Cup and Handle Breakout Confirms Bullish Trend

The technical outlook for TRX also supports its recent price surge. The attached chart shows a clear “Cup and Handle” formation, a classic bullish pattern that indicates a continuation of the upward trend. In this case, TRX has broken out of the handle part of the pattern, confirming a potential bullish breakout.

This breakout suggests that TRX could continue its upward trajectory, potentially targeting the $0.18-$0.19 range, which aligns with the measured move from the cup and handle pattern.

Additionally, the Relative Strength Index (RSI) has climbed slightly above 70, indicating that Tron is overbought as of Aug. 21. This technical indicator could mean a period of consolidation or correction next.