THORChain (RUNE) Up 30% Over the Weekend Despite Market Collapse — What’s Driving RUNE?
As the price increases, what drives it and can it continue?
Key Takeaways
- RUNE Price surges 30% over the weekend
- THORChain Lending launched
- However, there has been a pullback in price
- Chart analysis points to a retracement
THORChain’s native cryptocurrency RUNE has been defying the bearish market trend recently, as it continued to rise despite the market slump that saw Bitcoin shed thousands of dollars. Over the weekend of August 19-20, the price of RUNE it increased by 30% measured against the August 21st high, but it has seen a pullback in price.
This was a continuation of the uptrend that started on August 1 and resulted in a total increase of 124%. In comparison, the total market cap has been moving sideways and significantly downward from the start of the month and proceeded to fall sharply on August 17 when it decreased by 11%.
In some of our previous analyses, we have covered the driving forces behind RUNE’s rise, but that was primarily up until the short market fall.
What are the reasons why RUNE has maintained its upward trajectory despite this market slump, and can it continue to rise?
What’s Driving RUNE?
Several factors were driving RUNE’s price growth in August. However, one has been prevalent and has continued to maintain excitement and bullishness, leading to recent growth.
That is the anticipation and, finally, the release of THORChains Lending product.
“Lending has been activated on THORChain. Users can lend their native Layer 1 assets — BTC and ETH — to THORChain and borrow a USD-denominated debt with no liquidations, no interest, and no expiration,” THORChain said in a blog.
This new approach to lending has been long-awaited and discussed at length in the community. The social sentiment for THORchain has been very high, and as per House of Chimera , a blockchain research and advisory group, it is dominating the space.
The release of THORChain lending was followed by Hyperliqud, a decentralized exchange derivatives listing perpetual swaps on RUNE.
RUNE Price Analysis
The price of RUNE reached our target of $1.81 today, August 21, coming up from $1.44 at Friday’s open, making an increase of 30%. It has since made a decrease to $1.61 in a sharp manner.
From June 15, we have seen the start of the uptrend in which the price made an overall increase of 141% as it came up from $0.78. This was the start of the impulsive move, with today’s price point projected as its ending wave 5.
Even though the price reached our target, it hasn’t done so in an expected manner, namely how it developed its wave 4. In comparison to wave 2, which lasted thirty-two days, the retracement on the seen pullback assumed to be wave 4 only lasted for three days. This is one of the reasons we can invalidate that this was wave 4 as it should usually last even more than wave 2.
The second reason is that although wave 4 is a shallow correction, the pullback from August 15 to 17 was insignificant compared to the previous increase. In combination with the currently seen sharp decline, this is the reason we believe that the price is now either ended on the three-wave increase altogether or has started developing its wave 4.
A decrease to $1.44 would be expected in the short term or even slightly lower to $1.38. For now, we are going to assume that the price is in a five-wave impulse, meaning that primarily we are going to expect one more high for wave 5 to develop, but if the price makes further decline on the expected downturn, we can start to look into a possibility that the increase ended altogether.
Disclaimer
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
