Tron (TRX) is shooting up against all odds. Here is the reason for the rise and a forecast for the price

Tron (TRX) is standing out in the crypto market, thanks to gains that have already exceeded 30% in the last 7 days, despite the fact that the vast majority of cryptocurrencies are shrouded in losses.

At the time of this writing, TRX is trading at $0.08, accumulating a slight loss of 1.29% in the last 24 hours. Its market capitalization is now $8.331 billion, so it ranks 18th in the Crypto Online ranking.

Why is the price of Tron (TRX) rising?

The Decentralized USD (USDD) stablecoin has been officially launched on the Tron network, to which investors have responded with a lot of excitement.

On April 22, Justin Sun, founder of Tron, announced that the DAO of that network had joined some of the main exponents of the blockchain ecosystem, to launch the most decentralized stablecoin in history.

From there, positivism took over the Tron cryptocurrency market, because to issue the new USDD, it will be necessary to burn TRX (a mechanism similar to what the Terra blockchain does with its stablecoin), which will cause a greater demand for this token.

It is quite likely that, as the adoption of this stablecoin increases, the price of TRX will benefit from it.

Tron price analysis and forecast

On the weekly TRX vs USDT chart we can quickly observe the recent great bullish force, capable of breaking through an immediate resistance at $0.072, generating an effective change of the short/medium-term trend.

We now see momentum developing, being hampered by resistance at $0.084. It is likely that a brief correction is about to occur; however, it does not seem like a good idea to sit and wait for sales in the face of a bullish momentum like the one we are seeing.

The 8-period EMA and 18-period SMA moving averages are crossed to the upside, and it is possible that they will work as dynamic supports if the price tries to pull back.

The next target is to touch $0.11; although if the long-term uptrend is being resumed, as it seems to be, thinking about the search for new all-time highs is not far-fetched.

Analysis and forecast of the weekly Tron (TRX) price chart. Source: TradingView.
Analysis and forecast of the weekly Tron (TRX) price chart. Source: TradingView.

All our publications are of an informative nature, so in no case should they be regarded as investment advice.

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