Key Takeaways:
- RUNE token price rallied over 14% in the week beginning Sept. 4.
- THORChain’s ecosystem development might be driving the token’s rally.
- RUNE coin price is moving inside a bullish pattern.
NEW DELHI (CoinChapter.com) — Decentralized liquidity protocol THORChain’s recent developments have helped RUNE coin prices move against the wider crypto market’s trend.
While most of the crypto market spent the week crabbing as the bears forced Bitcoin’s (BTC) price below $26,000 on Aug. 31. However, RUNE token price rallied over 14% from Sept. 4 to reach a daily high near $1.62 on Sept. 7 before bears pared gains.
The long upper wick on the token’s daily candle highlights the selling pressure against the THORChain token’s price. RUNE bulls have defended the 20-day EMA (red wave) dynamic support level near $1.48 since Aug. 26, but an increase in bearish pressure could force the token to test the support.
Moreover, breaking below the support level might result in the RUNE price dropping to its 100-day EMA (blue wave) near $1.26, which the THORChain token has tested five times (green circle) between Dec. 2022 and May 2023.
On the other hand, if the rally continues, the RUNE price might rally to the resistance near $1.73, which has rebuffed the token’s uptrend attempts multiple times since Feb. 2023.
Breaking and consolidating above the immediate resistance could provide the THORChain token price the boost needed to target the resistance near $1.96 before retreating.
The RSI for RUNE remained neutral, clocking a score of 58.31 on the daily timeframe.
RUNE Price Moving Inside A Bullish Pattern
Meanwhile, RUNE price is moving inside a bullish technical pattern called the ‘Bull Pennant.‘
A bull pennant pattern emerges when an investment instrument consolidates between two converging trendlines after undergoing a price rally. Ultimately, a breakout in the direction of the large initial movement follows the period of consolidation.
However, it is important to note the volume. As in, volume during consolidation should be low while it must increase during the breakout move. Otherwise, prices are more likely to pull back into the consolidation pattern.
If the THORChain token price breaks out of the bull pennant, it would theoretically set a price target near $3.366, at least 112% higher than its current prices.
THORChain’s Updates Likely Acting As Bullish Cue For RUNE Price
A key reason that helped RUNE price’s uptrend was likely the introduction of the Streaming Swaps feature in August 2023. The multi-chain DEX aggregator claimed the feature would help reduce slippage and improve price execution for large DeFi trades.
Slippage refers to the difference between a trade’s expected price and the actual price at which the transaction executes.
After introducing the feature, THORChain witnessed a surge in monthly volumes, with the metric surpassing $1 billion in August 2023, the platform’s highest in over a year.
Furthermore, the proposed integration of the BNB smart chain will happen at the end of the week beginning Sept. 4 if there are no “unforeseen delays.”
