THORChain Price Prediction: Will the RUNE token see a further decline in price?

• THORChain is currently trading at $1.54 (press time) with a decrease of 0.97% intraday.

• The 24-hour low for RUNE was $1.53 and the 24-hour high was $1.58.

• The current THORChain price is below the 20-, 50-, 100-, and 200-Day EMAs.

THORChain Overview:

THORChain is a decentralized liquidity protocol that enables users to swap cryptocurrency assets on a range of networks without losing full control of their assets. With THORChain, users can easily exchange one asset for another without relying on order books to source liquidity, as market prices are maintained through the ratio of assets in a pool.

The platform’s native utility token is RUNE, which serves as the base currency and is also used for governance and security purposes as part of THORChain’s Sybil resistance mechanisms. To participate in the rotating consensus process, THORChain nodes must commit a minimum of 1 million 300k RUNE.

THORChain was launched through an initial DEX offering (IDO) on Binance DEX in July 2019. The single-chain chaosnet was launched in April 2021, followed by the multi-chain upgrade, and the Mainnet was launched in June 2022. According to an official representative, THORChain has no CEO, founder, or directors. Instead, the development of the protocol is organized via Gitlab, with nodes making the final decisions on which codebase to run.

To address the issue of impermanent losses, THORChain uses a slip-based fee to ensure liquidity stays where it’s needed. The platform also utilizes a range of novel technologies, including one-way state pegs, a state machine, the Bifröst Signer Module, and a TSS protocol. All fees generated by the protocol go directly to the participants, including node operators and liquidity providers, with no provisions for the team. Instead, the team is incentivized by holding RUNE, just like everyone else.

RUNE is currently available on multiple blockchains, including Binance Chain and Ethereum, but support for these will end in favor of Native RUNE. THORChain’s innovative approach to decentralized liquidity has made it a popular choice for traders seeking to exchange assets across multiple networks while retaining control of their assets.

THORChain Technical Analysis :

During intraday trade, the RUNE/BTC pair saw a decrease of 1.45%, with a trading value of 0.00005516 BTC. However, the RUNE token suffered a significant decline of 83.35% in the previous year, indicating a substantial impact from sellers. With the market experiencing strong selling pressure, the RUNE token remained near its primary support level of $1.289 as of the end of 2022.

Since the start of 2022, the token has been rising but after making its new 52-week low in March 2022 sellers entered the market pushing the token downwards below its secondary resistance. The token attempted to remain near the secondary resistance level, but sellers gained dominance in the market and caused the token to fall below its primary support. As the year drew to a close, sellers further pressured the token, leading it to reach a new low for the 52-week period and hover near the secondary support level. 

Following the start of 2023, the token’s value began to increase and broke through its primary support at $1.650. However, soon after the breakout, the token began to consolidate and remained within the range of its primary support and resistance. This suggests that neither buyers nor sellers currently hold an advantage in the market. If the sellers gain control, they could push the token back towards its secondary resistance, which could result in the token being in a precarious state. In order to prevent this, buyers would need to intervene and provide support to the token.

The volume of the coin has decreased by 6.48% in the last 24 hours. The decrease in volume indicates that the number of sellers has increased. This shows that sellers are trying their best and there is a relationship between volume and the price of RUNE, which represents strength in the current bearish phase.

RSI is decreasing in the overbought zone and might show a negative crossover which indicates that the sellers are coming in the majority and pushing RUNE downwards. This suggests the strength of the current bearish trend. The current value of RSI is 55.41 which is above the average RSI value of 51.17. 

The daily chart shows a decline in both the MACD and the signal line, but there is no clear crossover that can validate the RSI’s assertions. As a result, investors should monitor the charts closely during the day’s trading session.

Conclusion

THORChain is a decentralized liquidity protocol that enables users to swap cryptocurrency assets across different networks. The platform’s native utility token is RUNE, which has suffered a significant decline of 83.35% in the previous year. In 2022, the token struggled to break through its secondary resistance level and remained near its primary support level. However, in 2023, the token broke through its primary support but remained within the range of its primary support and resistance. The RSI is decreasing in the overbought zone, and the MACD and the signal line are decreasing, but there is no clear crossover validating the RSI’s assertions. Investors should monitor the charts closely during the day’s trading session.

Technical Levels-

Resistance level- $1.542 and $1.847

Support level- $1.289 and $1.062

Disclaimer-

The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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