ThorChain price has rallied sharply over the past few days amid a broad cryptocurrency rally. RUNE is up to $8.9, which is the highest since Tuesday of this week. From its lowest point this week, it’s up more than 20%, taking its total market cap to more than $2.6 billion.
What is ThorChain and why is it rising?
ThorChain is a fast-growing blockchain platform in the decentralized finance (DeFi) industry. The aim of the network is to contribute to the delivery of an autonomous cross-chain liquidity network. This means that Ethereum DeFi ecosystems can provide liquidity to other decentralized platforms like Avalanche and Polygon.
ThorChain has grown a lot in the last few months. For example, it has 38 liquidity pools, with each pool having an average annual interest rate of 22%. It has a total locked value (TVL) of over $1.1 billion. Most importantly, the value of native on-chain swaps has increased to more than $5.9 billion. The number of monthly active users increased to 24,752 while the number of nodes increased to 102.
In March, ThorChain announced the next stage of its ecosystem. The developers announced that they would launch synthetic assets. These are assets that track other assets like forex pairs, stocks, commodities and other assets like ETFs and cryptocurrencies. This is an industry currently dominated by Synthetix Network.
The main reason for the increase in RUNE price is that investors are cheering the growth of its network. It’s also rising on the back of investors buying the drop now that it was down over 45% from its peak in March. So what’s next for ThorChain?
ThorChain Price Prediction
The 4-hour chart shows that RUNE price has been in a strong downtrend for the past few weeks. It fell to a low of $7.41, which was the lowest level on March 18th. It also moved slightly below the 50% Fibonacci retracement level.
The coin has now recovered and is approaching the 38.2% retracement level. It is also below the first support level of the Andrews Pitchfork tool.
Therefore, there are chances for the coin to resume the downtrend considering that it is still below the 50-period moving average. In this case, the next reference level to watch is $7.41, which was the lowest level this month. Learn more about Bitcoin Lifestyle, a robot that can help you automate your trading.
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