Funding Rate for Shorting Justin Sun’s TRX in the Negative
- The funding rate of shorting TRX has fallen to -500%.
- Justin Sun says TRON reserve will deploy $2 billion to fight them but expects a short squeeze coming in.
- Despite the reserve allocating $700 million to maintain its peg, USDD is now worth $0.99.
Justin Sun, founder of the blockchain DAO ecosystem TRON and Permanent Representative of Grenada to the WTO, recently shared that the annual percentage rate (APR) of the funding rate for shorting TRX on Binance is minus 500%. Sun added that the TRON DAO Reserve has allocated $2 billion that will be used to fight them.
His guess, however, is that they won’t even make it through the first day. He expects a short squeeze soon. The reserve has already made a deposit of 100 million USDC to Binance in order to acquire more TRX.
TRX is valued at $0.06365, down 16.32% in the past 24 hours and 24.7% in the past seven days. In less than 24 hours, the Relative Strength Index (RSI) saw a precipitous decline, falling from 54.34 to 14.49. It seems as if the RSI will remain in the oversold range for the foreseeable future. After flashing a number of green bars, the Awesome Oscillator (AO) also began illuminating descending red bars below zero in an ascending pattern.
However, in light of the current harsh conditions of the market, TRON DAO Reserve has allocated 700 million USDC to protect the USDD peg. At this time, the collateralization rate for USD is close to 300%.
Despite this, the USDD’s peg has been tripping over the course of the last several hours as the whole cryptocurrency market has been thrown into disarray. According to the data provided by CoinGecko, the value of the algorithmic stablecoin has decreased to $0.99.