THORChain Experiences 14% Price Surge in Single Day – Is $10 Possible for RUNE?
THORChain’s cryptocurrency, known as RUNE, has recently witnessed a significant uptrend in both its price and trading activity, positioning it as a crypto asset worth monitoring closely.
Currently, at the time of writing, the price of RUNE sits at $5.64, indicating a remarkable 14% surge within the past 24 hours. Moreover, trading volume has spiked by 28%, surpassing $308 million.
With 336 million tokens in circulation out of a total supply of 414 million, RUNE showcases a volume-to-market cap ratio of 16%, presenting itself as an attractive investment opportunity characterized by ample liquidity and mounting interest from traders.
RUNE Shows Strong Upward Momentum
Over the previous 20 days, RUNE has demonstrated considerable strength, maintaining an upward trajectory. Presently, today emerges as one of its most successful days since mid-May 2024, during which it observed comparable gains.
Recently, the token breached a crucial resistance level of $5 on the daily chart; nevertheless, there are lingering uncertainties surrounding the sustainability of this bullish momentum.
RUNE’s price hit its bottom on August 5th, coinciding with a general market downturn. However, aggressive buying pressure initiated around September 6th, propelling RUNE upwards.
Throughout this 20-day period of bullish activity, the previously constricted Bollinger Bands have expanded, indicating heightened volatility and potential for further upward movement.
Moreover, the MACD (Moving Average Convergence Divergence) lines have turned bullish, underscoring the prevailing strength of buying momentum.
For traders, a potential buying opportunity could materialize if the market retraces towards approximately $5.10, as corrections typically follow substantial price movements of this nature.
Nonetheless, if RUNE struggles to maintain its position above $5, it is advisable to monitor further price action before making any trading decisions. Despite the importance of exercising caution, several factors continue to underpin the optimistic outlook for RUNE.
Key Network Metrics
One pivotal metric influencing the valuation of RUNE is its Total Value Locked (TVL), currently valued at $853 million. This metric has been steadily rebounding since June 2023 owing to various milestones achieved within the THORChain network.
The network’s annual revenue surpasses $100 million, serving as a robust indicator of its growth trajectory. Furthermore, in the past 24 hours, there were over 31,000 swaps, $126 million in on-chain trading volume, and total earnings amounting to $304,000.
In addition, THORChain has been actively enhancing its decentralization initiatives. The network has revealed plans to delve into decentralized finance (DeFi) on Bitcoin, further reinforcing its upward momentum.
Most recently, THORChain attained an all-time high with 111 active nodes and 107 million RUNE tokens bonded, accounting for 32% of the total circulating supply.
A new set of validators are added every three days while old nodes are eliminated, safeguarding the integrity of a fully decentralized liquidity network.
As the threshold of 120 nodes approaches, a potential “bond war” could escalate activity and drive the prices of RUNE even higher.
New RUNE Burning Initiative by THORChain
Finally, THORChain recognized the contributions of its developers, emphasizing the decentralized governance structure of the network, where nodes formulate decisions that developers then implement.
Notably, one of the latest updates involves the enforcement of V136 and ADR 17 by Pluto, on X, which entails burning 1 basis point of system (1bps) income per block.
This burning mechanism effectively reduces the supply of RUNE, potentially leading to price appreciation if demand remains robust.
Considering these developments, RUNE shows promise for further appreciation, with price forecasts suggesting a potential rally towards $10, offering an 87% return on investment for individuals seeking to capitalize on its current growth trend.