TRON (TRX) Price Momentum Remains Strong Amidst Tether’s Massive USDT Issuance
TRON (TRX) is exhibiting a robust upward trend, currently trading at $0.3227 on Monday. The smart contract token has surged 54% from its April lows, with gains accumulating since the beginning of July totaling 17%. Market sentiment appears consistently positive, as indicated by key derivatives market trends and indicators, particularly the futures funding rate and open interest (OI).
Technical indicators further reinforce the bullish control, significantly increasing the likelihood that TRX will extend its rally towards its all-time high of $0.4501. This positive outlook is further fueled by recent developments in the stablecoin market, particularly Tether’s activity on the TRON blockchain.
Tether Issues 1 Billion USDT on TRON Blockchain
Tether, the issuer of the largest stablecoin, USDT, has minted 1 billion USDT on the TRON blockchain, according to on-chain data. This substantial issuance underscores TRON’s growing importance in the stablecoin ecosystem.
“In the last 25 days, Tether has issued a total of 8 billion USDT on TRON (2 billion) and Ethereum (6 billion),”
The circulating supply of USDT on the TRON protocol is now approaching 83 billion tokens, highlighting the blockchain’s pivotal role in Tether’s operations.
The demand for stablecoins is anticipated to rise in the coming months, following the recent approval of the GENIUS Act as US law. This legislation aims to regulate the development and issuance of stablecoins in the United States at both state and federal levels. Consumer protection and stakeholder interests are central to the GENIUS Act, which is expected to foster financial innovation and bridge the gap between the crypto industry and the traditional financial system.
Interest in TRON has been steadily increasing, as evidenced by the weighted funding rate chart. The consistent rise in this key indicator suggests bullish momentum, supported by higher demand for long positions than short positions. This indicates that more traders are adopting a bullish stance, using leverage to bet on price increases.
A subsequent increase in futures open interest (OI), representing the notional value of all outstanding futures or options contracts, reinforces the growing confidence in the ecosystem, especially with Tether increasing the supply of USDT on the network.
After peaking at around $541 million on July 23, the OI has averaged $492 million on Monday. Traders are closely monitoring this metric to assess investor confidence in TRX, particularly as bulls target a breakout towards all-time highs of $0.4501.
Technical Outlook: TRX Bulls Maintain Control
TRON’s price action remains bullish, supported by increasing interest in the derivatives market, a steady rise in spot volume, and robust technical signals. The Moving Average Convergence Divergence (MACD) indicator suggests maintaining exposure, as a buy signal was triggered on July 7 when the blue line crossed above the red signal line on the 3-day chart.
TRON’s path of least resistance remains upward, amidst a steadily rising Relative Strength Index (RSI), which is currently overbought at 76 but shows no signs of exhaustion. This implies that bulls still have room to propel the token to higher levels, while targeting the all-time high of $0.4501.
However, given that the RSI is overbought, traders should also temper their bullish expectations. Extremely overbought RSI levels are often a precursor to sudden pullbacks. In the event of a prolonged correction, traders may want to extend their scope to the 50-period Exponential Moving Average (EMA) at $0.2703, the 100-period EMA at $0.2416, and the 200-period EMA at $0.1992 for tentative support on the 3-day chart.
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