Tron’s price has been a bit volatile over the past few days due to concerns regarding its newly launched USDD stablecoin which is closer to the Tera USD. The coin is trading at $0.069, which is about 25% lower than last week’s high. Its total market cap has come down to around $6.82 billion.
USDD concerns remain
The biggest crypto story this month was the collapse of Terra USD, the world’s third-largest stablecoin. At its peak, it was the third largest stablecoin in the world after Tether and USD Coin.
Another big story was the launch of USDD Coin by Tron. USDD is a stablecoin that is very similar to the Tron USD as it is not backed by the US Dollar. Instead, it is an algorithmic stablecoin that automatically rebalances when it moves below or above $1.
USDD is one of the most successful stablecoins ever. In less than three weeks, its total market cap has grown to over $310 million. This makes it one of the largest stablecoins in the world and the 147th largest globally.
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TRX price declined due to concerns over USDD stablecoin. With algorithmic stablecoins like DEI, Neutrino and Terra USD losing their peg, there are concerns that USDD may do the same. For now, however, the peg of the coin has been relatively good and ranges between $0.998 and $1.01.
Tron’s price has also declined due to the weak performance of its DeFi platform. Like all platforms, its total value has taken off over the past few days. It has fallen slightly to about $4.2 billion, making it the fourth largest chain in the world.
tron price prediction
Turning to the four-hour chart, TRX price touched a high of $0.092 as demand for USDD coin increased. Over the past few sessions, however, the coin has retreated sharply and moved below the 25-day and 50-day moving averages. The coin stays above the ascending trend line shown in black.
Tron’s Stochastic Oscillator has moved slightly above the neutral level at 50. Therefore, the Tron price outlook is slightly bearish, with the next major support at $0.065. A move above the $0.0072 resistance level will invalidate the bearish view.