Justin Sun launches incentives to bolster TRON memecoin ecosystem as TRX price stands cautiously bullish

TRON founder Justin Sun announced an aggressive push to bolster TRON’s memecoin ecosystem, offering zero trading fees, unlimited free energy, and up to $1 million in developer incentives.

TRON (TRX) founder Justin Sun took to X to express a bullish sentiment on memecoins, stating that he will be fully promoting the development of Tron’s meme ecosystem. He further stated that he will not personally profit from memes launched on TRON. Instead, he will donate all proceeds and will cover any losses himself.

His promise has already materialized in the form of waiver of trading fees for trading memecoins on the platform for the next months, meaning that users can now trade TRON’s memes without spending TRX. Additionally, TRON will be fully covering the cost of energy for memecoin trading with no cap. Normally, users need to freeze their TRX to obtain energy required for smart contract execution, but this subsidy removes the need for this entirely. With zero fees and unlimited free Energy, memecoin trading on TRON is now completely free for the next six months.

In addition to waiving fees and subsidizing energy, Justin Sun has recently promised up to $1 million in funding for memecoin developers to incentivize them to build on TRON. This funding is complemented by prioritized listings on major exchanges like Huobi and Poloniex, making it easier for new memecoins to gain visibility and liquidity.

As far as TRX price is concerned, the combination of fee waiver, energy subsidies, and developer funding could prove bullish for TRX in the long run. Even though users won’t need to pay trading fees or energy costs for the next 6 months, the resulting influx of trading activity will likely lead to increased transaction volume and overall network growth. For example, users could use their profits from memecoin trades to trade other assets on TRON which do incur fees, increasing demand for TRX.

Moreover, the financial backing for TRON memecoin developers, along with the prioritized exchange listings, could spur more development on the network. As the network grows with more projects, demand for TRX will likely increase since developers use the token for smart contract execution.

Meanwhile, TRX is currently trading at $0.23, having bounced off from the local support region at $0.20-$0.21. However, the MACD line is below the signal line, indicating that bears are still in control. That being said, both lines are starting to flatten, which means that TRX bearish momentum might be weakening.

Moreover, RSI is at 55.02 and is trending upwards. It’s still well below the overbought territory, which means there’s plenty of room for the price to rise higher without being considered overbought.

Based on these indicators, TRX price stands cautiously bullish in the short-term. However, confirmation will depend on breaking major resistance levels. The immediate resistance is around the psychologically significant $0.25 level. The next resistance zone is between $0.28-$0.30, where the price consolidated from December to early January after the spike.