THORChain, a prominent native asset settlement protocol, has swiftly ascended to become the third-largest decentralized exchange (DEX) by trading volume in the past week. With today’s (November 15) trading volume reaching $1.44 billion, THORChain solidified its position, trailing only behind industry giants Uniswap and PancakeSwap, according to DeFiLlama .
Simultaneously, the price of RUNE, the native token associated with THORChain, has demonstrated remarkable gains, experiencing a 44% surge in the past week and an impressive 285% increase from its previous low on October 21.
The protocol’s rapid ascent, surpassing expectations and outpacing Curve Finance, underscores its growing influence in DeFi. THORChain‘s core developer, Chad Barraford, expressed surprise at the accelerated progress, stating in a November 13 X post , “Okay, this happened much faster than I thought. Just took 2 days instead of 2 months.”
As THORChain continues to redefine its standing in the DEX hierarchy, the notable surge in RUNE prices prompts questions about its potential trajectory and the broader implications for the decentralized exchange landscape.
The RUNE price, previously stagnant at $1 since November last year, exhibited a horizontal consolidation range, reaching a new low of $0.80 on June 14, 2023.
As the multi-year bear cycle concluded, recovery commenced, initially hitting $2 on August 20. A gradual ascending structure formed, marked by 60 days of consolidation. On October 20, the price surged to $1.50, initiating a parabolic uptrend, breaking a significant resistance at $3.40 with robust momentum.
Currently at $5.88, eyeing $6, it interacts with the 0.236 Fibonacci retracement without signs of struggle, while caution is advised with the RSI signaling overbought conditions at 85%.
Analyzing the 4-hour chart and wave structure, the price is in its concluding wave, forming a typical five-wave pattern since the June 14 low, with the last rise from October 20 identified as wave 5.
Surpassing the 1.618 Fibonacci extension level, the next significant target is around $6.80. Post-uptrend completion, a three-wave downward correction is anticipated, establishing the first macro higher low. Using the Fibonacci retracement tool, a projected target around $1.70 aligns with the 60-day consolidation phase. With no signs of seller pressure, the short-term indicates potential upward movement, followed by a sharp decline for RUNE once the increase concludes.
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