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THORChain (RUNE) Ready For 20% Climb Before Next Correction

Cross-chain exchange THORChain (RUNE) price registers a gain of 8.12% seen in the past two days. Amazingly, RUNE price maintains its bullish streak as it sprints above the rising parallel channel pattern.  More so, a reversal seen at the support trendline may also ignite a bull run as it hammers through the resistance trendline.

On the other hand, referring to the technical analysis, this particular pattern may trigger a price correction following a breach from the bottom trendline. EMAs are seen at $2.5 showing strong resistance on the downside. Thorchain’s 24-hour trading volume registered a loss of 44.6% or $291.6 million.

THORChain To Breach Resistance Trendline

The RUNE/USDT pair is seen to recover on June 18 when it was able to rebound from its low of $1.45. RUNE price has set an ATH of $3.04 or a growth of 108% in the past six weeks ever since it bottomed out.

More so, the massive sell-off which happened over the weekend also prompted a minor correct in the pattern. The confluence support served as a buffer which pumped up RUNE price by 5.66%.

According to CoinMarketCap, RUNE currently trades at $2.69 or a decline of 1.70% as of this writing. However, with the channel pattern, the coin should spike by 22% to punch through the overhead line.

In the most favorable conditions, RUNE price may be able to break through the resistance line and speed up the bullish movement. But, theoretically, the rising channel pattern most likely points to a bearish momentum especially once RUNE breaks through the support line. With that in mind, the RUNE price is prone to more correction if in case it breaches the lower trendline.

The two RSI peaks show some slowdown in bullish perspective.  In any case, when the divergence intensifies, traders may have better validation of an impending correction. Judging by the 20- and 50-day EMAs shooting for a crossover spotted at $2.5, increasing chances of recovery above the resistance line is expected.

DeFi Tokens Like RUNE On Revival

DeFi tokens like RUNE, SNX, and LDO are in a point of revival. RUNE registered an 11.51% spike on August 3. Although they have not drifted above the red lines, RUNE as well as other DeFi protocols has made a significant leap so far.

In other news, THORChain has recently flipped trip switch that will kill the support of both the RUNE BEP-2- and ERC-20-based variants. The IOU tokens are now being swapped for the native RUNE token following THORChain’s mainnet that happened last month. 

The old tokens will lose its value in the next 12 months so these tokens will be automatically upgraded to the native RUNE. This move was initiated to further decentralize the network.

RUNE total market cap at $885 million on the weekly chart | Source: TradingView.com

Featured image from Coinpedia, chart from TradingView.com

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THORChain Deploys Mainnet After 4-Year Wait, RUNE Soars 13% In 24 Hours

THORChain has been trading in the green and recovering faster than larger cryptocurrencies. The development team behind this project, Nine Realms, announced the launch of their mainnet after 4 years of development and research.

Related Reading | Cosmos (ATOM) Price Swells 12% – Can It Breach Resistance?

At the time of writing, THORChain (RUNE) trades at $2.30 with a 14% and 35% profit in the last 24 hours and 7 days respectively. The market seems to be positively reacting to the announcement.

RUNE with minor gains on the 4-hour chart. Source: RUNEUSDT Tradingview

As part of the announcement, crypto users on the Binance exchange will be able to participate in a promotional campaign and earn part of a total $1 million price. Via an official post, the team behind THORChain said the following celebrating the project’s major milestone:

Mainnet marks the achievement of a fully functional, feature-rich protocol with a large ecosystem and strong community. It has been a long time coming and the community is very excited about this important milestone.

Before mainnet, THORChain was operating with the Multichain Chaosnet (MCCN) to enable users to provide cross-chain liquidity. This allowed the project to battle-test its features and migrate from a centralized to a decentralized and community-driven platform, according to the official post.

As part of this deployment, the project launched its native token RUNE and has called for all token holders to swap their non-native RUNE for the former asset. Once 67% of the network runs on native RUNE, the protocol will implement a “Killswitch” and “kill” the non-native asset under the BEP2 standard.

As NewsBTC reported, 4 months ago THORChain released a highly expected feature, synthetics assets. This allowed users to gain exposure to the price of large cryptocurrencies, such as Bitcoin (BTC) and Ethereum (ETH), by trading with their THORChain versions called sBTC and sETH.

This was just one of the milestones reached by the project on track to its mainnet launch. The aim is to make the platform a decentralized, secure, and liquidity-efficient protocol in the decentralized finance (DeFi) sector.

Who Is Buying The THORChain (RUNE) Rally?

Data provided by the team behind the project claims THORChain has seen $9.2 billion in total trade volume, with a total of around 10 million transactions and around 72,000 unique swappers. The protocol has around $250 million in total value locked (TVL) making it one of the largest in the DeFi sector.

In their next step of development, which includes making the platform more transparent and decentralized, the team behind the project said:

Centralised points of failure must be removed as they are a risk to the future of the network. The largest remaining centralised point is Treasury management. Treasury plans to hand over full control to the community soon.

Further data provided by Material Indicators (MI) records an increase in buying pressure from investors with over $1,000 to $10,000 bid orders (red and green on the chart below). Retail investors (yellow on the chart) have been selling into the current price action while whales (brown and purple) have been inactive.

Source: Material Indicators

Related Reading | Top 5 Cryptos Taking A Major Beating In The Ongoing Market Mayhem

If the crypto continues to rebound, RUNE could extend its gain. If large investors see bullish continuation, they might jump into the action and push RUNE into further gains.

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Can RUNE Sustain Its 20% Rally?, Why This Analyst Doubts It

THORChain (RUNE) has seen an important rally in the past month. The native token of this decentralized cross-chain bridge rose from its 2022 low at around $3 with 30% intra-day rallies to its current levels.

Related Reading | THORChain Activates Feature, 30% Spike Follows, Can Bulls Sustain It?

At the time of writing, RUNE’s price trades at $9 with an 11% profit in the past 24-hours and a 17% profit in the past week.

RUNE on a rally in the daily chart. Source: RUNEUSDT Tradingview

According to analyst Alerzio from research firm Santiment, RUNE’s current rally has traders wondering if the token will be able to sustain its gains. The cryptocurrency could revisit its lows if the bulls are unable to push past the $10 in the short term or if the crypto market takes another bearish turn.

The analyst believes that RUNE’s current rally has been “healthy”. As the price move upwards, the token’s trading volume followed standing at its highest since April 2021.

In addition, the Weighted Sentiment, a metric used to measure market sentiment across social media platforms, suggests more gains. This metric stands in the negative as the token claims into its current levels which is a bullish sign.

Source: Santiment

In the crypto markets, operators believe that prices tend to move opposite to the crowd’s expectations. Therefore, a negative sentiment suggests more gains for RUNE. The analyst said that “the greed is out” of the market, for the time being.

In addition, the futures market seems to support the bulls as funding rates on Binance and FTX were barely returning from negative territory into positive on the recent price action. The analyst added:

Binnance’s funding rate is positive (not too much) while FTX’s funding rate is about to get into the positive areas. this can be considered as a “not very good, but not too bad” signal.

Source: Santiment
THORChain (RUNE) Potential Headwind For Future Gains

The analyst believes that THORChain (RUNE) developer activity could be a long-term obstacle for RUNE’s price. He claims the project needs fresh ideas and proposals to sustain its momentum. The analyst concluded:

RUNE’s previous rally was a healthy one. there is still some price potential in short term, but the outlook for long term hodling is not good enough because there is not enough development activity.

However, THORChain introduced a major feature for its network recently called synthetics assets. This gives users the capacity to access tokens pegged to the price of BTC, ETH, and others.

Related Reading | Top DeFi Names SUSHI, ThorChain, Others Surge 10% Higher

Thus, users will be able to leverage new investment strategies and products. At the time, an official THORChain post stated:

As a benefit, you will have access to yield generating vaults, and be one of the first users who will vest their funds. Minting synths will be capped and access will depend on how much liquidity is in the THORChain pools.

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THORChain Activates Feature, 30% Spike Follows, Can Bulls Sustain It?

Up almost 30% during today’s trading session, decentralized cross-chain exchange THORChain (RUNE) trades north of $5.28. One of the top gainers in the current relief rally across the market, the network has activated synthetic assets, a new feature that could attract use cases and users to the platform.

Related Reading | Monero And Zcash Take Off With 15% Gains, Here’s What May Have Spurred The Rally

RUNE moving sideways on the 4-hour chart. Source: RUNEUSDT Tradingview

Per an official post, synthetics assets are tokens pegged to the value of their underlying collateral, such as Bitcoin or Ethereum. In order words, users can now access BTC, ETH, and others running on THORChain.

Similar to Wrapped Bitcoin (wBTC), a popular token on Ethereum, with the difference than synthetic assets can also be collateralized by BTC, in this case, and other cryptocurrencies. The synthetic version of Bitcoin running on this blockchain is called sBTC and offers the user exposure to BTC’s price performance.

Unlike Bitcoin, according to the post, its synthetic version on THORChain offers faster transactions and lower fees. In that way, a user can trade with this benefit and benefit from other yield generation products. Per the post:

As a benefit, you will have access to yield generating vaults, and be one of the first users who will vest their funds. Minting synths will be capped and access will depend on how much liquidity is in the THORChain pools.

The post adds that users can simplify their trading experience, and gain access to different cryptocurrencies from multiple blockchains without using a centralized exchange. Core developer Chad Barraford said the following on the advantages of this feature and its impact on the network’s ecosystem:

Synthetics can be used to change the pool depths, and therefore correct the pool price to match market demands, i.e. arbitrage. This is super important because it means the pools can be arbs faster, cheaper, and more efficiently.

THORChain Publish Roadmap, How It Is Moving Towards Decentralization

Furthermore, synthetics assets will provide THORChain users with the ability to earn as much as 20% interest on their holdings. For that, users will need to lock their assets on a vault called THORSaving which will have an initial 5% APY.

One of the most hyped products in the lending and borrowing use case. Users will be able to access “self-repaying loans” which generate yield on collateral. As the post clarified:

You take the loan which will be paid automatically by the interest the vaults generate from the locked synthetics.

Barraford predicts a potential increase in trading volume for RUNE and the THORChain ecosystem in general. The project recently integrates with Terra (LUNA) and will begin acquiring this network’s native token along with its native stablecoin UST.

Related Reading | Mars Protocol To Launch On Terra, But Why MARS Has Seen A Massive Dump

Ultimately, the decentralized exchange aims at increasing its liquidity 10-fold. To achieve this goal, THORChain published a roadmap that included the integration of DEX aggregators, more features, wallets, and access to other blockchains.

THORChain project roadmap:

* More chains (LUNA, Privacy, L2's)* More wallets (all the big ones)* More integrations (Dex aggregators)* More Features: Synths, THORFi (lending, saving), THORNames

Not stopping until decentralised liquidity 10x bigger than centralised. $RUNE

— THORChain #ACTIVATETHESYNTHS (@THORChain) March 6, 2022