Tron price prediction after the warm reception of USDD

The Tron (TRX/USD) price jumped to the highest level since April 2nd as investors cheered the launch of the USDD stablecoin. It rose to a high of $0.0750, which was about 30% above the lowest level since April 11th. 

Tron launches USDD 

Tron is a leading blockchain project that was developed by Justin Sun. It is one of the most popular blockchain operating systems in the world, handling billions of dollars every day. According to TronScan, there are over 32.8 billion staked TRX. 

In April, Tron made headlines when it announced that it would launch a new stablecoin known as USDD. The concept is relatively similar to that of Terra’s USD coin, which is now valued at over $18.6 billion. 

It is unlike other popular stablecoins like Tether and USD Coin, which are backed by the US dollar. Instead, it is an algorithmic coin that rebalances depending on its price in relation to the US dollar. 

When the USDD price moves below $1, users and arbitrageurs can send 1 USDD to the system and receive $1 worth of TRX. Similarly, when the USDD price rises above that of $1, users can send $1 worth of TRX and receive 1 USDD.

The Tron price jumped sharply on Tuesday as investors reacted to the positive reception of the USDD coin. According to CoinGecko, it now has a market cap of over $32 .8 billion. CoinMarketCap estimates that the coin has a diluted cap of over $33 billion. This is a notable amount considering that the coin has just been launched.

Tron price prediction

The TRX price jumped to a high of $0.0750, which was the highest level since April 2 this year. On the four-hour chart, the coin has formed a cup and handle pattern, which is usually a bullish signal. It has also moved above the 25-day and 50-day exponential moving averages (EMA). 

At the same time, the Relative Strength Index (RSI) has been in a bullish trend and is approaching the overbought level. The coin has also risen above the ascending green trendline.

Therefore, there is a likelihood that the coin will likely keep rising as bulls target the key resistance level at $0.080. A drop below the support of $0.065 will invalidate the bullish outlook.

The post Tron price prediction after the warm reception of USDD appeared first on Invezz.