The price of THORChain – a cross-chain liquidity protocol, has been rising parabolically since the start of the month and made an increase of 77%. It still hasn’t recovered to its yearly high but is getting close to it.
With the general market sentiment currently neutral and most cryptocurrencies stagnating in value, RUNE is today, August 15, the biggest gainer and has been since the start of the month.
So what are the reasons behind this large interest and the token, and can it continue moving further up?
The number one reason that can be attributed to the price rise of THORChain is positive investor sentiment. As per Santiment data, the social volume for RUNE rose by 4,300% between 7 – 13 August.
In the same period, positive sentiment has increased by 6,100%, which in turn caused the asset’s trading volume to spike as well. Worth noting is that these metrics cooled off since their peaks a couple of days ago, especially the trading volume.
There isn’t one specific reason why this sudden positive outlook on THORChain, but numerous technical developmenst, integrations, and upgrades have started to brining more attention to the project.
To name a few:
But most notably, what brings the most excitement is the THORFi Lending mainnet release with collateral limited to BTC and ETH and no-liquidation-risk lending against your collateral. As one X user puts it:
After falling to $1.4 on June 1 last year from its all-time high of $22.15, unlike some other cryptos, the price of RUNE has continued decreasing and made a new lower high and lower low.
These lower highs and lower lows formed a descending triangle in which the price was for about a year. On June 14 this year, the price reached a new bear market low of $0.80, which was last seen in December of 2020 prior to the parabolic bull run to the ATH.
After reaching this territory, the price started the rise, which it is currently, and did so in a parabolic manner. At the moment it is still going to the upside with strong momentum and being traded at $1.55.
As mentioned, this is still a lower high compared to the one made in April, but with a breakout from the descending triangle and a higher low in August compared to the one in June, this can be a sign that a bull cycle has started.
The RSI is in the extremely overbought zone sitting at 92% on the daily chart, which could be a sign that the increase wouldn’t last for long.
Zooming into the hourly chart, we can see that the price reached overextension. Not it is in it wave 3 that almost came to the 2.272 Fib level and has started falling slightly down.
Now we are going to see wave 4 developing into a consolidation pattern, leading to a small retracement. But when it ends another higher high would be expected to the $1.80 area.
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.