• THORChain token RUNE price risks a decline or a stall after a 60% weekly rally.
• Activity on the THORSwap exchange has increased, potentially propelled by Streaming Swaps introduced in late July.
• Fundamental developments offer potential for further price increases, but short-term stalling is likely.
THORChain Token RUNE Price Rally
THORChain token RUNE price changed hands at $1.56 in the European session on Aug 15, after a 15% daily uptrend, which brought the token’s overall weekly gains to 60%. The trading volumes remained high in the previous two days, but the smaller-grain 2-hour chart shows a volume decline in the previous hours. Thus, closing the session above the mentioned line is not self-evident.
RUNE Uptrend Potential Reasons
According to the on-chain data tracker DeFiLlama, THORChain’s native decentralized exchange THORSwap experienced a 24% monthly uptrend in total value locked (TVL). The latter stood at $62 million on Aug 15. Additionally, the trading volumes on the DEX surpassed the $73 million limit on Aug 14, an 8-month high for the exchange. At the same time, the trading volume on the THORChain stood at $156 million overall. The possible reason behind this heightened activity could be Streaming Swaps – a feature introduced by THORSwap team in late July 2023 which allows users to split large transactions into sub-swaps for better price execution.
RSI and Overbought Cues
The relative strength index (RSI) has also been charted through “overbought” territory for five days prior to that point. In short, when RSI moves above 70 limit traders take it as an overbought cue and exit market to secure their gains – however drop of RUNE price is not certain yet as fundamental developments still offer potential for further price increases and short term stalling appears likely too.
Fundamental developments are important factors when predicting future prices of cryptocurrencies – however it does not guarantee unencumbered increase of prices and short term stalling appears likely even with all advancements made by project teams like with case of THORSwap Stream Swaps feature introduction which might have propelled DEX activity and pushed RUNE prices up significantly during last week’s rally.
• THORChain token RUNE price risks a decline or a stall after 60% weekly rally; • Activity on THORSwap exchange has increased potentially due to introduction of Streaming Swaps; • RSI indicates overbought cues; • Fundamental developments offer potential for further increase but short term stalling is likely too