TRON Price Analysis: TRX/USD targets at $0.04 after as SUN genesis mining is launched

TRON (TRX) is now the 14th largest digital asset with the current market capitalization of $2.63 billion and an average daily trading volume of $4.1 billion. Also, apart from NEM, TRX is the only green coin out of top-20, based on CoinMarketCap data. TRX/USD has gained over 2% in the recent 24 hours to trade at $0.0375 by press time.

Notably, TRON's trading volumes increased by over 400% (from less than $1 billion to over $4 billion by the time of writing) in a matter of days after the creator of the project, Justin Sun, announced the launch of its DeFi token SUN. The genesis mining of the coin started on September, 2, and according to the Sun's announcement on Twitter, the amount of collateralized TRX staked on the platform exceeded five billion in 12 hours.  As FXStreet previously reported, staking effectively takes the coins out of circulation for a certain time, which creates a deficit and push the price higher.

TRX/USD: The technical picture

On the daily chart, TRX/USD jumped outside the Bollinger Band and tested the multi-month high at $0.0383. While the daily RSI is on the overbought territory, there are no signs of the upcoming reversal as of yet., which means that the coins may continue the upside move and retest $0.04 in the nearest future. The last time the price was that high more than two years ago, in June 2018. If this barrier is passed, $0.0450 will come into focus (38.2% Fibo retracement for the downside move from April 2018 high to November 2018 low).

On the downside, the price may retreat towards the upper line of the daily Bollinger Band currently at $0.0355. Once the price is back inside the Bollinger Band, the correction may gain traction with the next barrier at September 2 low of $0.0310 and the psychological level of $0.0300. 

TRX/USD daily chart