Tron Price Analysis: TRX/USD consolidates above the Bollinger Band middle curve

Tron price is in consolidation in the middle of key Bollinger Band levels; the upper curve and the middle curve. The price has been on a steady and gradual recovery from the lows traded on March 12 at $.0.0072. At the time of writing, TRX/USD is teetering at $0.01173 while the upside has been capped at $0.012.

The Relative Strength Index (RSI) in the daily rage has slowed down the uptrend in favor of sideways action. The horizontal movement is reminiscent of the consolidation in the market. On the other hand, Tron is trading below the Simple Moving Averages (SMAs). Due to the 50 SMA slide under the 200 SMA, TRX/USD is likely to break down and retest the support at $0.010.

On the brighter side, the constricting Bollinger Band hints that a breakout is around the corner. Therefore, the best the bulls need to do in the near term is to push the price above the critical resistance at $0.012; a move likely to culminate in a rally as buying interest increases on improving sentiments.

Tron enters the stablecoin market with USDJ

Tron founder Justin Sun on Saturday revealed the network’s plan to launch a stablecoin digital asset that will be backed by both Tron (TRX) and BitTorrent (BTT). The new digital asset would be designated the name USDJ and will be pegged to the US dollar. The system executing the stablecoin is referred to as Djed. It is a MakerDAO-like system whose white paper reads in part:

USDJ is a new currency generated through decentralized smart contracts on the TRON network. Anyone can pledge TRX as collateral to generate USDJ. USDJ enters into free circulation as any other cryptocurrency does once generated. It is pegged to the US dollar through Collateralized Debt Positions (CDPs), and also has autonomous feedback mechanisms.

TRX/USD daily chart