Thorchain RUNE has been showing weakness since May, when it peaked above $20. Other cryptocurrencies rallied strongly during the August-November period, but Thorchain’s RUNE coin failed to make new highs, reversing below $18. However, the support zone around $3 held for the second time and the price started to bounce off this support level.
Initially, we saw a bounce above $6, but the 100 SMA (green) turned into resistance. RUNE/USD pulled back lower, but the 50 SMA (9yellow) which had acted as resistance for the previous three months, turned into support, and the RUNE token started rising from there, now facing the 200 SMA (purple) as resistance. The price soared above $8, so RUNE gained around 270% in less than a month.
Thorchain Daily Chart – RUNE climbs above $8
Will RUNE pull back before pushing above the 200 SMA?
The increase was attributed to the rollout of new platform features and discussions of what’s to come have sustained RUNE’s momentum. Thorchain, which is a DEX, follows in the footsteps of Terra LUNA, both built from the Cosmos SDK. THORChain now removes the need for intermediaries for trading non-native cryptos, so traders can trade tokens across different blockchains.
There have been talks that Thorchain might also add a stablecoin THOR.USD, but this is unconfirmed. What is confirmed is that Thorchain added synthetic assets or Synths on March 9 which have already raised $200 million in funds. Now users can trade tokens backed 50% by the target crypto and 50% by RUNE and they do not need to rely on wrapped assets. Chad Barraford, lead developer of THORChain tweeted earlier this month that the new feature “has half the swap fee, making swaps cheaper, gas fees cheaper and faster for traders.”
THORChain also plans to launch Thorfinance (Thorfi) which will support borrowing and lending. In addition to this, THORChain is also preparing to add support for the Terra LUNA token. So, while Terra LUNA is attracting a lot of interest from investors, Thorchain is also attracting interest by going in this direction. We are following the price action now and if the price drops to the 100 SMA around $5, we will try to go long on Thorchain.