Tron Price Analysis: TRX Taking Huge Steps to Boost DEX Liquidity with Tether Collaboration

  • Tron (TRX) and Tether announce a new partnership to introduce a USDT to the Tron network. It would be a new version of the USDT stable coin.
  • TRX/USD is firmly within the paws of the market bears, as critical areas of support continue to be exposed.

TRX/USD: Recent Price Behavior

The Tron price remains well within the control of the market bears, and has been edging lower over the past ten sessions. Initially, the selling pressure erupted on 24th February, a move that was seen across the market. TRX/USD is trading around its lowest levels seen since 15th January. A key area of daily support was breached on 2nd March; as a result, the door has been left wide open to further downside pressure.

Tron and Tether – New Stablecoin Collaboration

Tron and Tether have jointly announced a new form of collaboration to introduce USDT to the Tron blockchain. In terms of the Tron foundation, its intention is very much focused on increasing the liquidity on its decentralised exchange. Tether will be launching a new version of its USDT stablecoin, facilitating users via the network to transact and exchange fiat pegged currencies.

The initial announcement was posted via the official Tron Foundation Twitter account:

“TRON is partnering with Tether, officially introducing USDT into the TRON blockchain. This integration will elevate our dApp ecosystem, increase DEX liquidity, and enhance accessibility for Partners and institutional investors.”

Justin Sun, Tron’s founder and CEO, followed up with his comments on the partnership:

“We are making big steps to achieve decentralised finance with Tether. TRON will soon have its stablecoin! This will benefit our entire ecosystem and make it easier for institutions to access the TRON blockchain.”

Strategically this appears to be a genius move by Tron, given how aggressive price volatility has been to the downside. The introduction of a stablecoin that already has much awareness around it will have many excited and will be welcomed by Tron merchants and developers looking for greater peace of mind with their transactions.

Moreover, Tron and USDT’s intention is to enhance the experiences of “enterprise-level partners and institutional investors,” facilitating them with more flexibility in how they function through the variety of features offered via TRON’s growing network. Lastly, the critical thing to recognize of late is Tron’s strong intentions of accommodating the needs of institutional investors.

Technical Review – TRX/USD

TRX/USD daily chart.

Given the recent breach and close below of a key daily support area $0.023500, further selling pressure is eyed. The next level of support is eyed at $0.018700, a consolidation zone seen at the back end of December 2018. It was used as a resting period ahead of further moves north during the end of year rally. Lastly, a demand zone should be noted at $0.01700-$0.016000, and any further failure would see the 2018 low retested.

Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Author:
Ken has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.