- Tron price made a strong rebound in April.
- The network will launch the USDD stablecoin in May.
- It also launched a giant $1.11 billion incentive fund.
The Tron price had a mixed performance in April this year as the developers made major announcements. The TRX coin initially jumped to a high of $0.08 and then tumbled to $0.057. It then made a spectacular rebound to today’s $0.070, bringing its market cap to over $7.2 billion.
Tron April Review
Tron made a number of important announcements in April this year. The most important one was that the network was building a new stablecoin known as USDD. USDD will be similar to Terra’s UST because it will be an algorithmic token.
In the statement, Justin Sun said that the stablecoin will provide custody for the $10 billion worth of highly liquid assets raised from blockchain industry initiators. It will also have a basic interest rate of 30% per annum.
Terra hopes that the new stablecoin will become popular among users inside and outside of its network. Besides, billions of dollars worth of stablecoins like USD Coin and Tether flow in the network every single day. For example, the market cap of all USDT in Tron rose to over $41.7 billion.
The Terra price also reacted to news that Kyber Network had launched in the BitTorrent Chain (BTTC). Kyber moved to the network with a $1.5 million fund in liquidity mining and trading incentives.
Another reason why the Tron price has risen sharply lately is that the network announced a new ecosystem fund. The developers will provide $1,111,111,111 in financing over the next decade to incentivize users of the ecosystem. Other networks like Kadena launched their $100 million incentive funds in April.
The Tron price will react to the launch of the USDD coin in May. A successful rollout could be extremely bullish for the coin.
Tron price prediction
The daily chart shows that the TRX price has been in an important resistance level in the past few days. It is trading at $0.720, which it struggled to move above in the past few days. The coin has moved slightly above the 25-day and 50-day moving averages while the MACD has moved above the neutral level.
A closer look shows that the Tron price has formed what looks like a head and shoulders pattern. Therefore, while the USDD launch will provide a catalyst, there is a likelihood have a bearish breakout in May.
If you are planning to buy cryptocurrencies such as Tron, check our guide on how to invest in Tron in 2022.
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