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THORChain Becoming the Third-Largest DEX Boosts RUNE Price — What’s Next?

Last Updated November 15, 2023 2:16 PM
Nikola Lazic
Last Updated November 15, 2023 2:16 PM

Key Takeaways

  • THORChain Surged to the third-largest DEX, elevating RUNE prices.
  • RUNE exhibited remarkable gains, eyeing a milestone at $6.
  • Price is getting overextended, but there are no signs of it stopping just yet.

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 .

ThorChain 3rd in trading volume

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.

RUNE Price Analysis

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.

A bull cycle started
In a parabolic rise

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%.

RUNE Price Prediction

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.

Limited upside
Ending wave

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.

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.

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