Tron (TRX) Price Prediction: Bulls Eye Return to $0.070

Key Insights:

• Tron (TRX) fell by 6.03% on Thursday, the loss more modest than the broader crypto market.
• Investor fears of a recession gripped the global financial markets on Thursday before support kicked in this morning.
• This morning, a pickup in appetite for riskier assets and a USDD return to $0.98 levels delivered support.

On Thursday, Tron (TRX) fell by 6.03%. Partially reversing a 13.31% rally from Wednesday, TRX ended the day at $0.0592.

A mixed start to the day saw TRX strike an early morning high of $0.0657.

Falling short of the First Major Resistance Level at $0.0690, TRX fell to a late low of $0.0583.

Steering clear of the Major Support Levels, TRX ended the day at $0.0592.

Relative to the broader market, the loss was modest, with bitcoin (BTC) tumbling by 9.72%,

For TRX, USDD revisited $0.98 levels, easing market fears of another stablecoin collapse. Coupled with the return to $0.98 levels, transparency remained key, with the TRON DAO Reserve providing the market with collateral ratios throughout the day.

Tron (TRX) Eyes a Return to $0.07 as Stablecoin USDD Stabilizes

At the time of writing, USDD sat at $0.98 levels, with the TRON DAO Reserve yet to successfully reintroduce the dollar peg.

Overnight, TRON founder Justin Sun shared a TRON DAO Reserve update, saying,

“Doing our part.”

The original tweet from the TRON DAO Reserve said,

“To safeguard the overall blockchain industry and the crypto market, TRON DAO Reserve will transfer another $100 million #USDC on Tron to CeFi exchange to purchase #TRX.”

On June 15, USDD fell to a current week low of $0.9582, the unpegging in the week causing TRX to slide to a current-year low of $0.0469 before finding support.

Adding comfort to TRX and USDD holders was the latest collateral ratio.

According to the TRON DAO Reserve, USDD had a collateral ratio of 325.21%, up from 317.88% on Thursday and 248.33% on Tuesday.

While the collateral ratio and the gradual recovery of the USDD peg were positives, figures from Defi Llama delivered a different picture.

At the time of writing, the total value locked stood at $4.00bn, down 6.01% over 24 hours. On June 8, the TVL had stood at $6.29bn before the USDD-driven decline.

The TVL decline suggests a possible TRX pullback.

TRX Price Action

At the time of writing, TRX was up 2.36% to $0.0606.

A bullish start to the day saw TRX strike a morning high of $0.0632.

Coming within range of the First Major Resistance Level at $0.0638, TRX eased back to sub-$0.0610.

Technical Indicators

A move back through the $0.0611 pivot would support another run at the First Major Resistance Level at $0.0638. Support from the broader market would be needed for a breakout from the morning high of $0.0632.

In the event of an extended rally, TRX could test the Second Major Resistance Level at $0.0685 and resistance at $0.070.

Failure to move through the pivot would bring the First Major Support Level at $0.0564 into play. Barring an extended sell-off, TRX should avoid sub-$0.050. The Second Major Support Level at $0.0537 should limit the downside.

Looking at the EMAs and the 4-hourly candlestick chart (below), the signal was bearish. TRX sits below the 50-day EMA, currently at $0.0663. This morning, the 50-day EMA pulled away from the 100-day EMA. The 100-day EMA fell back from the 200-day EMA; TRX price negative.

A move through the 50-day EMA would bring $0.070 into play.