RUNE Price Risks Stall After 60% Weekly Rally on THORSwap Activity

17. August 2023 By admin Off

• THORChain token RUNE price rose 60% over the past week.
• Heightened activity on THORSwap exchange likely drove the uptrend.
• The RSI is indicating an “overbought” signal, suggesting a stall in the next few sessions.

Overview

The THORChain token RUNE price has seen a 60% weekly rally backed by heightened activity on the THORSwap exchange. Streaming Swaps feature introduced in late July might have propelled the DEX, however, a stall in RUNE price appears likely due to an “overbought” signal indicated by RSI oscillator.

THORChain Token Price Rally

The RUNE token price changed hands at $1.56 in the European session on Aug 15, after a 15% daily uptrend which brought its overall weekly gains to 60%. The trading volumes remained high and pushed past a significant resistance line of $1.53.

RSI Oscillator Indicates Overbought Signal

The relative strength index (RSI) has been charted through “overbought” territory for the previous five days. When it moves above 70-limit, traders consider this as an exit point to secure their gains and thus could lead to stall or decline of RUNE price even though it isn’t certain yet.

Activity On THORSwap Exchange

According to DeFiLlama’s data tracker, THORSwap experienced 24% monthly uptrend in total value locked (TVL) with trades surpassing $73 million limit on Aug 14 which is 8-month high for the exchange while overall trading volume stood at $156 million which is likely attributed to Streaming Swaps feature introduced last month that allows users split large transactions into sub-swaps with time or price optimization options according to their needs.

Conclusion

Although fundamental developments do not guarantee unencumbered increase of RUNE prices, there is still potential for another leg up if trading activity remains high and despite RSI indicator pointing towards “overbought” situation in short-term future so traders should be cautious before investing heavily into crypto asset based solely on positive news or hype surrounding it as market conditions can change quickly without any prior notice.