The TrueFi price went parabolic as investors cheer the platform’s growth. TRU, the native token, rose to a high of $0.092, which was the highest level since June 8th this year. At its peak on Saturday, the coin was up by almost 100% from its lowest level this year. It has a market cap of more than $59 million.
What is TrueFi and why is it moving?
The Decentralized Finance (DeFi) industry has gone through a rough patch in the past few months. After experiencing rapid growth during the pandemic, the total value locked (TVL) has crashed from more than $250 billion to less than $75 billion.
There are several reasons why the sector has come under intense pressure in the past few months. There have been concerns about regulations and the significant overvaluation in the sector. At the same time, DeFi has struggled because of the recent crash of Terra and the ongoing weakness in Celsius and BlockFi.
TrueFi is a DeFi platform that was launched by TrustToken. It is a protocol for uncollateralized lending that is powered by on-chain credit scores. It was launched in 2020 and has seen spectacular growth in the past few months.
The network has a platform that provides vetted borrowers to request loans that are denominated by TrueUSD. TRU stakers are able to assess the creditworthiness of loans while TrueUSD lenders earn a good interest on their loans. Today, TUSD is one of the biggest stablecoins in the world with a market cap of over $1.2 billion.
TrueFi price has jumped in the past few months as the ecosystem has remained being vibrant. It has a total value locked (TVL) of more than $498 million. At the same time, investors are cheering the recent launch on Optimism which introduced lower fees and faster speeds in the network.
Most importantly, the value of the TRU coin has risen as investors cheer the recent governance proposal on governance. They recently launched TrueFi DAO which will introduce decentralized portfolio onboarding, on-chain voting, and dMLAs.
TrueFi has also risen because of the strong performance of DeFi tokens recently. Coins like IDEX, YFI, and YFI have jumped sharply in the past few days.
TrueFi price prediction
The four-hour chart shows that the TRU price has been in a strong downward trend in the past few months. This price action is in line with that of other cryptocurrencies like AAVE, UNI, and Ethereum.
There are signs that TrueFi price has bottomed after it crashed to a low of $0.048. Now, it has bounced back as investors buy the dip. Along the way, it has coin moved above the key resistance level at $0.066, which was the highest point on June 20th.
The 50-period and 25-period moving averages have made a bullish crossover while the Relative Strength Index has been rising. Therefore, there is a likelihood that the TrueFi price will continue rising as bulls target the key resistance at $0.1121, which is 45% above the current level.