Tron (TRX) Price Prediction – Bulls Eye 0.95 in a Trend Bucking Session

Key Insights:

• On Tuesday, Tron (TRX) followed a Monday 3.35% gain with a 1.44% rise to end May in positive territory.
• Bucking the broader crypto market trend, TRX ended May up 34.8%, supported by the launch of stablecoin USDD.
• TRX technical indicators are bullish, with TRX sitting above the 50-day EMA.

On Tuesday, Tron (TRX) rose by 1.44%. Following a 3.55% rally on Monday, TRX ended the month of May up 34.8% to $0.0844.

A choppy Tuesday session saw TRX fall to an early afternoon low of $0.0793. Finding support at the First Major Support Level at $0.0808, TRX surged to a late intraday high of $0.0845.

The First Major Resistance Level, at $0.0849, pegged TRX back.

An upswing in Tron’s total value locked (TVL) contributed to the recent breakout. The launch of algorithmic stablecoin USDD back in early May has driven demand.

USDD Demand and the Dollar Peg Drives TRX Back Towards $0.10

In May, Tron launched algorithmic USDD stablecoin to take on Terra. Backed by native token, TRX, USDD is pegged to the US dollar 1:1 and follows a similar pegging mechanism to Terra Lab’s TerraUSD (UST).

As explained by Tron founder Justin Sun,

“When USDD’s price is lower than 1 USD, users and arbitrageurs can send 1 USDD to the system and receive 1 USD worth of TRX. When USDD’s price is higher than 1 USD, users and arbitrageurs can send 1 USD worth of TRX to the decentralized system and receive 1 USDD.”

Since the launch of USDD, Tron has become the third largest DeFi blockchain, with a total value locked (TVL) of $6.31bn, according to Defi Llama.

JustLend (JST) is the most dominant protocol at 47.98%. The platform offers an APY of 19.8% for USDD supply.

TRX Price Action

At the time of writing, TRX was up by 6.87% to $0.0902. A mixed start to the day saw TRX fall to an early morning low of $0.0821 before striking a high of $0.0911.

TRX broke through the First Major Resistance Level at $0.0862 and the Second Major Resistance Level at $0.0879.

Technical Indicators

TRX will need to avoid the Major Resistance Levels and the day’s $0.0827 pivot to target the Third Major Resistance Level at $0.0931. TRX would need broader market support to break out from a current year high of $0.0925.

In the event of an extended rally, TRX could test resistance at $0.095.

A fall through the Major Resistance Levels and the pivot would bring the First Major Support Level at $0.0810 into play. Barring an extended sell-off, TRX should avoid sub-$0.080. The Second Major Support Level sits at $0.0775.

Looking at the EMAs and the 4-hourly candlestick chart (below), the signal was bullish. TRX sits above the 50-day EMA, currently at $0.0813. This morning, the 50-day EMA pulled away from the 100-day EMA. The 100-day EMA moved away from the 200-day EMA; TRX price positive.

Avoiding sub-$0.85 and the 50-day EMA would support a continued run at $0.095.