Tron's price continued its strong downtrend, hitting its lowest level in more than four weeks as founder Justin Sun urged investors to buy the dip.

you see (TRX) to a low of $0.2200, down more than 50% from its December high. This decline pushed TRX's market cap from over $26 billion to $19 billion.

In a post on X on Monday, Sun recommended buying coins on the dip, maintaining his long-held view that TRON remains undervalued.

Sun's bullish position is supported by Tron's strong fundamentals. The network is ranked as the third largest player in Decentralized finance After Ethereum and Solana with a total value locked $6.69 billion.

Tron is also the market leader in Tether transactions due to its affordable transaction costs compared to Ethereum. On Monday, USDT from Tron Transactions By 91% to reach $137 billion, making it one of the largest payment processors in the world. The Tron blockchain currently has over 59.2 million USDT holders.

Buy the dip and focus on building! 2025 is going to be a great year!🤞

- His Excellency Justin Sun 🍌 (@justinsuntron) January 13, 2025

TRON also ranks highly in the decentralized exchange industry. Since their inception, DEX protocols have transacted virtually 100 billion dollars In size. In the past seven days, they have processed more than $782 million worth of tokens, making it the 10th blockchain.

Tron is also very popular among users as monthly active addresses and transactions have remained steady in the past few months. It has over 2.17 million active titles, making it the second largest chain after Solana, which has 4.27 million.

Tron offers competitive stake returns, making it an attractive option for holders. The network stake yield is currently 4.52%, supported by higher network fees and lower circulating supply.

according to TokenTerminal, Tron has collected $2.21 billion in fees in the past 12 months. until Ethereum flipped This year, it generated $116 million versus Ethereum's $60 million. TRON's circulating supply has continued to decline, going from 88.1 billion in January of last year to 86.17 billion today.

Tron price analysis

The daily chart shows that Tron fell from $0.4487 on December 4 to $0.2245 amid the broader cryptocurrency sell-off. TRX moved below its 50-day and 100-day weighted moving averages, while key oscillators such as MACD and Relative Strength Index (RSI) indicated bearish momentum.

However, on the positive side, Tron has formed a bullish double bottom pattern at $0.2245, with a neckline at $0.2760. A double bottom pattern often precedes an upward breakout.

If TRX remains above the $0.2245 support level, this indicates that the double bottom is still holding, which could lead to a recovery. However, a break below this level could push TRX down to $0.20, in line with the uptrend line connecting the lowest volatility since June of last year.