Key Takeaways
TRON has risen by more than 18% over the past few hours.
The sudden bullish impulse appears to correlate with the launch of USDD.
TRX would have to break through $0.077 to target $0.088.
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TRON has seen its price skyrocket over the past few hours after the project’s founder revealed the forthcoming launch of its native stablecoin. USDD is scheduled to launch in early May and will be available on Ethereum and BNB Chain.
TRON Surges on Stablecoin News
TRON is entering the stablecoin market with the launch of USDD.
TRX jumped by more than 18% over the past few hours after TRON founder Justin Sun announced the launch of the “most decentralized stablecoin in human history.” Dubbed USDD, the TRON-native stablecoin will be pegged to TRX and aims to achieve on-chain decentralization by not relying on any entities for redemption, management, and storage.
In an open letter, Sun explained that “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.” He also mentioned that “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.” The goal is to keep USDD stable at 1:1 against the US dollar via “proper algorithms” regardless of the market volatility.
According to Sun, USDD is set to launch on the TRON network on May 5 and will also be available on Ethereum and BNB Chain through the BTTC cross-chain protocol.
TRX saw a significant spike in bullish impulse following the announcement. The token jumped from a low of $0.063 to a high of $0.075 within a few hours. Further gains can be expected if TRON can slice through the upper boundary of a parallel channel at $0.077 that developed on its daily chart.
Slicing through such a critical resistance barrier could encourage sidelined investors to reenter the market, pushing TRON to $0.088. But if the buying pressure is strong enough, TRX could advance toward $0.10.
Source: TradingView
It is worth noting that TRON must continue to trade above $0.068 for the bullish outlook to be validated. Failing to do so could see traders exit their long positions, pushing TRX to the channel’s lower edge at $0.059.
Disclosure: At the time of writing, the author of this piece owned ETH and BTC.
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