Focused on the issues of low accuracy, high energy consumption of target tracking network and short life cycle of network in Wireless Sensor Network (WSN), the moving target tracking technology based on dynamic clustering was proposed. Firstly, a Two-Ring Dynamic Clustering (TRDC) structure and the corresponding TRDC updating methods were proposed; secondly, based on centroid localization, considering energy of node, the Centroid Localization based on Power-Level (CLPL) algorithm was proposed; finally, in order to further reduce the energy consumption of the network, the CLPL algorithm was improved, and the random localization algorithm was proposed. The simulation results indicate that compared with static cluster, the life cycle of network increased by 22.73%; compared with acyclic cluster, the loss rate decreased by 40.79%; there was a little difference from Received Signal Strength Indicator (RSSI) algorithm in accuracy. The proposed technology can effectively ensure tracking accuracy and reduce energy consumption and loss rate.