Key Takeaways
- THORChain’s RUNE token jumped 77% since Mar 8 to reach $7 for the first time in nearly two months.
- Synthetic asset trading went live on THORChain’s platform, likely boosting prices.
NEW DELHI (CoinChapter.com) — THORChain’s native token RUNE registered a bullish rally that saw its prices jump over 77% between Mar 8’s low ($4.031) to reach an intraday high of $7.1 on Mar 14.
RUNE moved above its 26-day exponential moving average (26-day EMA, white wave) and 50-day MA (purple) on Mar 1. Moreover, the THORChain token successfully defended the level following a profit-taking inspired retest on Mar 8, suggesting traders’ buy the dip mentality.
Its recent uptrend pushed the THORChain token above the 100-day MA (yellow wave), bulging RUNE across short and mid-term time horizons. However, RUNE’s 200-day MA (red wave) remains a resistance for the token.
It seems bulls would now try to flip immediate resistance at $7.3 before moving to challenge the 200-day MA resistance. Bears might pose a strong challenge near the 200-day MA, but if RUNE pushes past the hurdle, its prices could reach $8.5.
In addition, a sustained uptrend could see the THORChain token reach $9.9 before retreating.
Meanwhile, momentum oscillator MACD remains bullish for RUNE. The MACD histogram, which charts the difference between the MACD line (difference between the 12-day and 26-day EMA) and the MACD signal line (9-day EMA of MACD), charted expanding positive bars.
Also Read: THORChain eyes 35% rally as RUNE confirms cup and handle breakout.
Expanding bars indicate bullish momentum is strengthening for the THORChain token.
THORChain’s RSI Might Ruin The Party
The relative strength index might play a spoilsport for THORChain’s bullrun party. RUNE’s RSI stands at 69.25, suggesting lower chances for further price rise. In detail, the RSI measures the magnitude of recent price changes to analyze overbought or oversold conditions.
When the RSI goes above 70, the asset enters the overbought region, indicating a trend reversal is on the cards. With RUNE’s RSI nearing overbought levels, investors who rely on RSI would likely book profits, triggering a correction.
As a result, the THORChain token could drop to immediate support at $6.25. Further downside movement could bring RUNE to support at $5.5, near its 100-day MA line. Finally, RUNE has support at $4.76, near the token’s 26-day EMA.
DeFi Synthetic Assets Go Live On THORChain
Synthetic assets trading went live on THORChain’s platform on Mar 10, likely helping fuel RUNE’s current upside rally.
Also Read: Waves Finance (WAVES) explodes 117% in a week.
In detail, synthetic assets are blockchain-based tokenized derivatives whose value fluctuates depending on the tokens’ reference index.
Liquidity pools within the THORChain ecosystem back the synthetic assets, with 50% of the synth’s value in the underlying asset and the other half in its THORChain’s native token RUNE. Synthetic token holders can redeem the synth token for the real thing on a 1:1 basis.
For example, a trader can exchange one synthetic Bitcoin (BTC) for a real Bitcoin.
Furthermore, THORChain’s core developer Chad Barraford outlined a new platform called Thorfinance, which would likely introduce a burn mechanism for RUNE tokens, making the token deflationary and adding bullish tailwinds to RUNE’s ongoing rally.
At the time of writing, RUNE was trading at $6.95, up 9.29% on the day.
