Crypto News at Your Fingertips

What is RUNE THORChain Analysis: Momentum Builds for a Bullish Surge Crypto Explained?

A Detailed Analysis of its Bullish Trend

Behind the Bullish Wave of RUNE THORChain: A Crypto Market Examination

Breaking the Resistance

 

The recent price action of RUNE has been nothing short of impressive, indicating potential for further upward momentum.

Breaking the Resistance

RUNE has recently broken a key resistance level around $3.30-$3.40, a move that was anticipated to potentially propel the price towards the $8 mark. This bullish momentum, with possible minor setbacks around the $5.48 and $6.38 levels, mirrors patterns observed in other rapidly growing cryptocurrencies like Solana.

Support and Momentum

As RUNE’s price advances, the support area shifts accordingly. Currently, the updated support range lies between $2.82 and $3.97. This support is not necessarily indicative of an impending pullback; rather, it serves as a safety net in case of a downward retracement.

Wave Patterns and Future Prospects

Analyzing the wave patterns, it’s observed that RUNE might still be in the midst of a larger degree third wave, suggesting further upward movement. The next key levels to watch are $5.48, which has almost been reached, followed by $6.38 and then a more ambitious target of $8.21, aligning with common expectations for a third wave in an impulse pattern.

Technical Indicators and Market Sentiment

Momentum Builds

Technical indicators on the hourly chart, such as the RSI, show that RUNE is currently overbought, displaying some bearish divergences. However, considering the overall wave count and the momentum of the third wave, there’s still room for upward movement. The MACD supports this bullish sentiment, showing the highest readings, indicative of a strong third wave.

Daily Chart Observations

On the daily chart, the MACD shows no signs of a slowdown, and the RSI, while overbought, doesn’t exhibit bearish divergences. This lack of bearish signals on the daily chart reinforces the bullish outlook for RUNE.

What is THORChain? RUNE Crypto Explained

THORChain, a blockchain protocol built on Cosmos, the so-called “Internet of Blockchains,” is redefining the landscape of decentralized finance (DeFi). Its primary aim is to make all cryptocurrencies liquid by enabling the trading of non-native crypto assets, such as Bitcoin for Ethereum, in a completely decentralized manner.

RUNE price action suggests that the market is far from exhausted and is pushing for higher levels. With the recent updates, the support has shifted, and RUNE continues to show strong bullish signals. As always, market participants who have been following these updates are well-informed of these developments. Keep an eye on RUNE as it continues its upward trajectory, possibly even reaching towards the $10 to $12 range in the foreseeable future. For more detailed insights, remember to like, comment, subscribe, and consider joining the channel membership for exclusive content.

THORChain’s Core Functionality

Much like Coinbase and Binance, THORChain facilitates cryptocurrency trading. However, it distinguishes itself by never taking control of the funds, thus offering a truly decentralized experience. For those seeking a deeper understanding of Cosmos, THORChain’s underlying technology, a detailed explanation can be found in a dedicated video covering the topic from A to Z.

Decentralized Exchange (DEX) and Liquidity Pools

THORChain powers a decentralized exchange (DEX) akin to UniSwap or SushiSwap. This DEX allows anyone to trade or lend their crypto assets by providing liquidity to an asset pool. In return, participants earn a yield on their assets. This approach democratizes access to financial products and services, which traditional centralized parties might restrict.

Origins and Development

Conceived in 2018 during a hackathon, THORChain’s development led to the launch of its multi-chain chaos net in April 2021, after initial testing on several testnets. The protocol’s broader goal, driven by its team and community, is to create decentralized liquidity, a cornerstone of the DeFi movement.

The Role of RUNE in THORChain

THORChain uses an adaptation of Bancor’s continuous lending pools to facilitate trades. RUNE, THORChain’s native token, plays a central role in these transactions. In a typical swap from Asset A to Asset B, the protocol conducts two trades: A for RUNE, then RUNE for B. This double swapping mechanism allows for decentralized, non-custodial swapping of assets across different blockchains.

RUNE’s Market Performance and Network Security

As of June 2021, RUNE held a top 10 spot by market cap among DeFi tokens. The protocol initially supported assets from Bitcoin, Ethereum, Bitcoin Cash, Binance Smart Chain, and Litecoin, with continual additions of other tokens and assets. THORChain operates on a proof-of-stake model, secured by node operators who bond and earn RUNE. Nodes validate swaps and create pools, rewarded for their service.

The Liquidity Pool Mechanism

Like many DEXs, THORChain uses an automated market maker (AMM) model. Prices in the liquidity pools are reflective of external prices on other exchanges, maintained through arbitrage. Liquidity providers deposit RUNE and another asset into corresponding liquidity pools, earning swap fees and RUNE rewards.

How to Use THORChain

Users can engage with THORChain via interfaces like ThorSwap. The process involves downloading a compatible wallet, connecting it to the interface, and then either depositing liquidity or withdrawing assets. ThorSwap’s keystore wallet and wallets integrated with THORChain, like ShapeShift, facilitate these interactions.

Future Developments and Expansion

THORChain’s team envisions expanding beyond cross-chain swaps to encompass broader DeFi services, including borrowing, lending, and synthetic services across various blockchains. Short-term goals include greater wallet support, new asset pools, and transitioning from the chaos net to the main net.

Price Setting Mechanism and RUNE Tokenomics

THORChain sets prices using arbitrators and its continuous liquidity pool design, rebalanced by arbitrage bots. RUNE’s tokenomics are structured so that its price increases deterministically with growth in network liquidity. As of the video’s production, RUNE was valued at around $6, with a market cap exceeding $1.3 billion.

Facebook
Twitter
LinkedIn
Pinterest
WhatsApp

Leave a Comment

Your email address will not be published. Required fields are marked *