THORChain recently went through a significant hard fork that led to various changes within its blockchain system. Despite the upgrades brought about by this hard fork, the market didn’t respond positively, resulting in a significant drop in the value of the token. Let’s dive deeper into the current situation surrounding RUNE.
Insights into THORChain’s latest hard fork
The latest hard fork for THORChain was implemented on September 4th by the development team. This upgrade included the elimination of outdated legacy coding, an update to the Cosmos SDK version, optimization of node states for quicker synchronization, and the incorporation of support for Bitcoin Taproot addresses.
Despite the crucial changes introduced by this hard fork, it failed to attract bullish momentum in the market, leading to a staggering 70% decrease in the token’s value over the past half-year. Moreover, within just the last week, the price of RUNE saw a double-digit decline.
According to CoinMarketCap data, the price of RUNE experienced an 11% drop in a mere week, settling at $3.54 with a market capitalization exceeding $1.18 billion at the time of reporting.
Interestingly, even as the price of the token fell, its trading volume surged, which typically serves as a precursor to a bear market rally. Nonetheless, it’s noteworthy that despite the price dip, the sentiment towards RUNE showed signs of positivity, indicating a somewhat bullish outlook.
There was also a substantial increase in RUNE’s social volume, showcasing the token’s popularity within the cryptocurrency community. Additionally, an analysis by CryptoCrypto using Coinglass data uncovered a promising indicator – an uptick in RUNE’s long/short ratio, implying a higher presence of long positions compared to short ones.
Future Potential of RUNE
Further examination into the daily chart of the token was conducted by CryptoCrypto to evaluate the likelihood of a bullish trend in the near future. Observations indicated that RUNE’s price has been consolidating within a parallel channel. Notably, there were positive developments such as the token touching the lower Bollinger Bands threshold, a signal often associated with price increases. Furthermore, the Relative Strength Index (RSI) also portrayed an upward trend, suggesting a potential bullish reversal.
Additional data analysis by CryptoCrypto utilizing Hyblock Capital’s information offered insights into the upcoming targets for the altcoin. Based on technical indicators, a scenario where the bulls regain control could see RUNE aiming to surpass $4.22 in the upcoming days. Conversely, a sustained decline in price may lead to a drop to $2.9.