Tron’s DeFi stake explodes by 61% as TRX price prepares for a quick rebound

• TRX price slumps below critical trend line as declines stretch to $0.0555.
• Three unique wallets drive a 61% increase in Tron’s total value locked.
• TRX price respects support at $0.0555, ahead of a possible bullish trend reversal.

Tron price is exchanging hands at $0.0593 amid widespread cryptocurrency dumping that has stemmed from an escalated feud between Changpeng Zhao (CZ), Binance CEO and FTX’s Sam Bankman-Fried (SBF).

FTX has suffered a liquidity shortage as investors rushed to withdraw their funds. A tweet by CZ late Tuesday hinted at Binance moving to acquire the embattled FTX exchange to protect users. However, it was too little too late, as crypto assets, already hammered by the 2022 bear market run, plunged into deeper losses.

This afternoon, FTX asked for our help. There is a significant liquidity crunch. To protect users, we signed a non-binding LOI, intending to fully acquire https://t.co/BGtFlCmLXB and help cover the liquidity crunch. We will be conducting a full DD in the coming days.

— CZ Binance (@cz_binance) November 8, 2022

Meanwhile, Tron price could quickly flip bullish and recoup the losses incurred over the last 24 hours if support at $0.0555 holds its ground.

The state of Tron – Messari Report

Messari, one of the leading cryptocurrency research platforms, has released its first edition of the quarterly coverage, highlighting developments within the Tron ecosystem. According to the report, the network has, over the last half year, exhibited strength bolstered by the launch of USDD in May 2022.

The Total Value Locked (TVL) in the Tron decentralized finance (DeFi) ecosystem increased by 61%, mainly driven by three unique wallets that deposited about $1.6 billion in several assets.

“The two most significant highlights: 480.4% increase in the number of holders of #USDD and the 71% increase in the Total Value Locked of #TRX.”

Learn more about @MessariCrypto‘s reports on the state of #TRON Ecosystem & #USDD in Q3. https://t.co/FY9Kp6Vtjr

— TRON DAO (@trondao) November 9, 2022

Messari foresees continued growth in Tron’s TVL if USDD, a stablecoin built on its blockchain, expands across the ecosystem. Moreover, increasing demand for USDD may improve TRON’s resource model, which promotes deflation.

Tron price on the verge of flipping bullish

Tron price is among the crypto assets that could flip bullish quickly in the wake of the declines witnessed across the market. A strong demand area surrounding its primary support at $0.0555 will likely fashion TRX with strong northbound momentum, setting the pace for rapid rebound.

Although the Relative Strength Index (RSI) has not stretched into the oversold region, it has slipped slightly below the midline. As it recovers traders will be free to trigger their buy orders.

TRX/USD daily chart

However, investors should wait until Tron price makes a clean break above $0.6000 before firing up their long positions to be on the safe side. This will ensure sudden pullbacks are averted while capitalizing on a potential bullish move to $0.06400 and $0.0660.

A daily candlestick close below TRX’s immediate resistance at $0.0600 could signal more sellers to come out for another field day, increasing the probability of declines extending to $0.0530 and $0.0515.