ThorChain Coin Price Up 8% – Time To Buy RUNE?
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ThorChain is a hugely popular decentralized exchange (DEX) platform given the ease of use for new crypto investors. Its native utility token has grown exponentially as more crypto investors look to buy RUNE.
Although the DEX is a new entrant, 2021 has served as its watershed year. The RUNE token price has surged from $2.02 at the beginning of the year to $20.31 in May before the cryptocurrency market crash.
Even though the DEX platform has seen its value slump, the RUNE token is rallying with the general crypto market.
In this article, we will explore if this might be a great time to buy RUNE.
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ThorChain: DEX For All Users
Founded in 2018, ThorChain is a decentralized liquidity protocol that enables users to exchange crypto assets easily across a range of networks without handing full custody of their assets to the network in the process.
ThorChain is built as a cross-chain blockchain solution making it easy for users to swap digital tokens with just a few clicks.
ThorChain’s continuous liquidity protocol makes it easy for users to be kept updated on the value of an asset without relying on an order book or oracles.
ThorChain is built with Tendermint, a Byzantine Fault Tolerant engine that also powers fellow crypto protocol Cosmos blockchain. The network uses a proof-of-stake (PoS) consensus algorithm that require validators to bond their RUNE tokens (1 million RUNE) before being nominated to verify transactions on the platform.
To disincentivize bad behavior on the network, ThorChain slashes the bonded tokens of validators who intentionally threaten the security of the network.
To facilitate cross-chain token swaps, ThorChain uses a number of top-notch technologies including on-way state pegs, a state machine, the Bifrost Signer Module and a TSS protocol.
It also works to make sure that liquidity providers do not suffer “impermanent losses” when contributing liquidity to the protocol’s pools.
What is RUNE Price?
RUNE price action has slumped with the larger crypto market as it is tied to the hip with Bitcoin. However, its unique role in the crypto space is already becoming clearer.
RUNE’s price is seeing positive price action and rising. Could it be the right time to buy RUNE? At press time, RUNE is trading at $5.6 increasing 8.952 percent on the daily trading chart.
Even though it is seeing a single-day uptrend change, this is not the best price action of the RUNE token since inception.
Prior to the market crash, RUNE tapped at a $22 valuation trading at $20.31 on May 18th. It soon plummeted to $7.8487 a few days later and has been unable to reclaim its previous high.
It surged to $14.07 on May 27th. Since then, the token has been unable to retain its price action, and soon lost more than 50% of its value.
However, the RUNE token is set for a rally after the crypto market recovers. This might be a good time to buy RUNE.
RUNE Technical And Fundamental Analysis
On the trading chart, RUNE price has strong fundamentals. The digital asset’s relative strength index (RSI) currently stands at 38.76, meaning it is trading above the oversold margin and below the overbought status.
This is a good time to buy RUNE as you will rise with the general market.
On its short-term prospect, RUNE is trading below the 20-day moving average (MA) support at $7.946.
A rally above the indicator on this trend line could see it create support at the $8 mark.
Its moving average convergence and divergence (MACD) is trading below the zero line at -1.561. However, the trend line is gradually rising meaning a bullish run is expected before the weekend ends.
On its long-term performance, RUNE is trading just below the 200-day MA support at $7.141. This would likely change as the crypto market recovers.
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