Tron price experienced a strong rally on Tuesday, as cryptocurrencies went through a short squeeze. TRX surged to a high of $0.082, the highest level since July 30th, and has since risen by more than 135% from its lowest level in August.
The main catalyst for the TRX surge was Franklin Templeton’s decision to file for its Bitcoin ETF, joining other large American companies such as Ark Invest, Invesco, and Blackrock. It is still unclear whether the SEC will accept these funds, as they have put in place strict surveillance clauses to prevent manipulation. However, analysts believe that the SEC will ultimately accept these funds, following the success of Grayscale Bitcoin Trust.
Franklin Resource’s application is a major one, as it is one of the biggest companies in the US, with over $1.5 trillion in assets under management.
The rising popularity of Tron’s DeFi ecosystem has also boosted TRX price. The total value locked (TVL) in its DeFi sector has jumped to $5.7 billion, making it the second-biggest player in the sector after Ethereum. In addition, many dApps in Tron’s ecosystem have seen an increase in funds, with JustLend’s TVL jumping by more than 7% in the past 7 days, while JustStables, Sun, and stUSDT TVL have risen by over 5% in the same period.
The upcoming US inflation data scheduled for Wednesday could serve as the next catalyst for Tron price. Analysts expect the data to show that inflation remained at an elevated level in August.
The TRX daily chart shows that the price has been in a strong uptrend in the past few months, forming an ascending channel. Volume has been relatively high while the price remains above the 50-day moving average. Thus, the outlook for Tron is bullish, with the next level to watch being at $0.0851, the highest level on July 28th. The stop-loss of this trade will be at $0.077.
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