The TRON cryptocurrency outperformed on Thursday because of its announcement related to a new decentralized algorithmic stablecoin to be known as USDD. TRX price gained 10% in the past 24 hours and is up by 7.20% today.
The founder, Justin Sun, announced that TRON would pull its resources to create a new decentralized algorithmic stablecoin. Here USDD will be pegged to TRX, and it will be available on the BNB and Ethereum Chain through the BTTC protocol.
Sun also said that the stablecoin would provide custody services for highly liquid assets and use them as an early-stage reserve. The TRON was founded in 2017 by Justin Sun, and his sole motive is to decentralize the Internet through blockchain technology and dApps.
The primary step is to decentralize the content creation and distribution industry. It brings ownership to the content creators and helps them monetize their content. TRX is the native coin, and it is used to pay gas fees on the network. It provides several tools in this protocol to ensure a more democratic and decentralized process.
The main difference between TRON and its competitor is that TRX provides easy access to all the contents anytime, anywhere, provided the user has a stable internet connection. It gives content creators and users a good opportunity to go beyond governments’ censorship.
Immediately after announcing the new stablecoin USDD, the TRX price surged by 10%, but it may not survive and come down to the support level due to the red candle formation. Read TRX price prediction and price analysis to know the details.
TRX was trading around $0.067. You can notice a big green candle on the daily chart, followed by a red candle. Interestingly, it crossed the resistance level with a big volume, and now it may take support at around $0.064.
MACD turns bullish with two green histograms on the daily chart. RSI is at 56, indicating neutral momentum, and Bollinger Bands have expanded, increasing the volatility. Yesterday the green candle crossed the upper line of Bollinger Bands, and the coin seems to be bullish.
On the weekly chart, we can find a strong support level around $0.056, but now TRX is forming a green candle. Moreover, most of the technical indicators are neutral on the long-term chart.
We do not think it is ideal to buy for the long term because it may come down to $0.056, and you can accumulate some coins around that level.
For now, you should watch the price movement and keep a closer eye on the chart. It is not a good time for a short-term investment, and you should consider this crypto token for the long term.
