TRX Price Prediction: USDD and Risk Appetite Brings $0.07 into View

Key Insights:

• Following range-bound moves on Sunday and Monday, TRON (TRX) was in breakout mode this morning.
• Easing fears of a USDD collapse and a sharp pickup in appetite for riskier assets delivered morning support.
• The technical indicators remained bearish. TRON continued to sit below the 100-day EMA.

On Monday, Tron (TRX) slipped by 0.33%, bucking the broader market trend. Partially reversing a modest 0.66% gain from Sunday, TRX ended the day at $0.0611.

A bearish start to the day saw TRX fall to a low of $0.0594 before striking an afternoon high of $0.0621.

Falling short of the day’s Major Resistance Levels, TRX eased back to test support at $0.060 before steadying.

The broader crypto market delivered support in the afternoon session.

Adding to the upside was a continued USDD upward move away from last week’s low of $0.9256.

Following a string of modest gains and losses, TRX was on the move this morning.

A pickup in appetite for riskier assets delivered support, with the European equity markets and the US futures on the rise, softening demand for the Dollar.

Tron (TRX) Eyes $0.07 Supported by a USDD Return to $0.97

At the time of writing, USDD was up 1.04% to $0.9739.

USDD has continued its recovery from a June 19 slump to 0.9256, easing market fears of another stablecoin collapse.

However, despite the upward trend, TRON DAO Reserve has yet to reintroduce the dollar peg.

Unlike the events that unfolded during the collapse of TerraUSD (UST)and Terra LUNA, Justin Sun and TRON DAO Reserve have remained vocal, providing regular updates.

An added comfort for TRON and the broader crypto market is the level of transparency on USDD and its reserves.

Today, the USDD collateral ratio stood at 326.41%, aligned with the assurance of over-collateralization.

TRX Price Action

At the time of writing, TRX was up 6.38% to $0.0650.

A bullish morning saw TRX strike a morning high of $0.0658.

TRX broke through the First Major Resistance Level at $0.0623 and the Second Major Resistance Level at $0.0636.

Technical Indicators

Avoiding a fall through the Major Resistance Levels and the $0.0609 pivot would support another run at the Third Major Resistance Level at $0.0663. Support from the broader market would be needed for a breakout from the morning high of $0.0658.

In the event of an extended rally, TRX could make a move towards $0.070.

A fall through Major Resistance Levels and the pivot would bring the First Major Support Level at $0.0596 into play. Barring an extended sell-off, TRX should avoid sub-$0.059. The Second Major Support Level sits at $0.0582.

Looking at the EMAs and the 4-hourly candlestick chart (below), the signal was bearish. TRX sits below the 100-day EMA, currently at $0.0675. This morning, the 50-day EMA narrowed to the 100-day EMA. The 100-day EMA eased back from the 200-day EMA; TRX price negative.

A move through the 100-day EMA would bring $0.070 into play.