Key Takeaways:
- THORChain token RUNE price risks a decline or a stall after a 60% weekly rally.
- The uptrend came on the back of heightened activity on the THORSwap exchange.
- Streaming Swaps, introduced in late July, might have propelled the DEX.
YEREVAN (CoinChapter.com) — 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 chart below shows the RUNE token price pushed past a significant resistance line of $1.53. 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.
The relative strength index (RSI) has also been charted through “overbought” territory for the previous five days. In short, the RSI is a gauge of market sentiment and indicates the most profitable market entry and exit points.
When the RSI oscillator moves above the 70-limit, traders could take the reading as an “overbought” cue and exit the market to secure their gains. Notably, a drop in RUNE price is not certain. However, a stall in the coming sessions appears likely.
Meanwhile, the reasons behind the uptrend are noteworthy.
THORChain TVL grows
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 the heightened activity on the exchange is Streaming Swaps, a feature introduced by the team in late July 2023. According to the press release, the feature “allows patient swappers to get better price execution by splitting large transactions into sub-swaps.” I.e., the clients can choose between time-optimized and price-optimized swaps.
Notably, fundamental developments on the blockchain do not yet guarantee an unencumbered price increase. Thus, the short-term stall still appears likely. However, the RUNE price could manage another leg up afterward if the trading activity on THORSwap remains high.
