RUNE has seen a beautiful increase of no less than 124% this month, as we shared on Crypto Insiders premium environment for members In this section, we look at the underlying reasons that might explain the increase. In addition, we analyze the price based on technical analysis so that you can make an informed decision to buy or sell RUNE.
One of the most popular cryptocurrencies at the moment is THORChain (RUNE). The price has risen 5% in the last 24 hours. In the last seven days we saw the price increase by 16%, however we only saw real fireworks in the last 30 days. During this period, RUNE increased by approximately 123%. The increase places RUNE in 48th place by market value.
What is ThorChain?
THORChain is a blockchain-based decentralized liquidity network where users can instantly and cross chain convert your digital assets and is based on Cosmos SDK. THORChain uses a automated market maker (AMM) which is very similar to the way Uniswap (UNI) uses it. This model ensures that users can use RUNE to carry out transactions between different Polish† Additionally, these users can also earn money through THORChain by lending their cryptocurrencies and earning interest on them.
Why did RUNE increase in value?
The reason why RUNE has risen so fast might have to do with this message† This indicates that THORChain has undergone a protocol update. In addition, this month’s increase could also be related to this message that the THORChain team shared via Twitter. This indicates that THORChain also synthetic assets, a financial product where other financial products are counterfeited, in this case other cryptocurrencies. Half of the value will be represented by counterfeit assets, for example bitcoin (BTC), and the other half will contain RUNE. This update will increase the demand on RUNE, which in turn will be beneficial to liquidity providers as this gives them a higher interest rate for lending their cryptocurrencies.
RUNE technical analysis
When we look at the RUNE graph we see some interesting things. Whereas in our previous analysis on RUNE we looked at the resistance at $5,176 and indicated that if we broke through this level we could actually see the highs, we now see that this has indeed happened. We also saw at the time that if this were to happen, it could possibly cause a breakout of the Bollinger Bands (BB) and an RSI rising too high. If this were to happen, we could expect a short dip. This has also happened. Although the price rose to $6 in no time, we saw a short drop which caused the price to spike inside the BB. The RSI also managed to return to more neutral territory. Now we see that the course has been shot further into the air. If we continue at this rate, it would not be a surprise if we start looking for the resistance line around $13.
What are the expectations for the next period?
Do you want to stay up to date, receive more RUNE technical analysis or ask questions about it? Inside the Crypto Insiders premium environment for members, we discuss crypto news and continue to share more updates with you. Additional technical analysis on other currencies covered in this section is also shared here. Considering taking a position at RUNE? Contact one of our crypto analysts and coaches through the premium member environment, they will be happy to help you make an informed decision.