The cryptocurrency market experienced a significant drop in the past week. However, an altcoin has successfully emerged in this bearish wave. THORChain’s RUNE has managed to defy the downtrend. On the other hand, this set it apart from the rest of the crypto landscape.
Background of altcoin ThorChain rally
A key factor contributing to altcoin RUNE’s impressive performance is THORChain’s innovative stream swaps. Unlike traditional clearing methods, flow swaps allow users to secure more favorable swap rates by leveraging alt swaps. This additional flexibility allows users to optimize their trades based on timing and clearing prices.
⚡️ @THORChain processes record volume after introducing ‘Streaming Swaps’.
Ignoring a brutal selloff across the markets, $RUNE is up 40% this week.
Read more 👇https://t.co/P9xNnCbD3O pic.twitter.com/3nXAiLmU0F
— The Defiant (@DefiantNews) August 19, 2023
Moreover, the increasing demand for cost-effective swaps in a highly competitive environment gives THORChain a distinct advantage. The network has positioned itself to meet this growing demand by offering stream swaps. On the other hand, it has potentially driven greater adoption of the THORswap and altcoin RUNE token.
THORChain’s expanding reach and DeFi entry
THORChain is also strengthening its utility by rapidly expanding across major networks, including altcoins Cosmos and Avalanche. On the other hand, it increases investor confidence. The network’s entry into the world of decentralized finance (DeFi) is particularly noteworthy. Accordingly, THORChain has recently made RUNE perps accessible in the Hyperliquid DEX.
In the past 24 hours, altcoin RUNE price has risen from an intraday low of $1.51 to a monthly high of $1.71. During this bullish rally, RUNE’s trading volume increased by 94.08%. Accordingly, it reached $211,230,019. Also, its market capitalization rose 12.11 percent to $584,504,039.
overbought conditions
However, a closer look at the RUNE/USD price chart shows that the Bollinger Bands are expanding and the price action has breached the upper bar. Additionally, the Stochastic RSI, currently at 82.44, increases the possibility of an overbought market. Typically, when the Stochastic RSI crosses 80, it signals that the market may be overextended and is bound for a pullback. As a result, investors should be cautious as there may be a correction or consolidation phase on the horizon.
cryptocoin.com THORChain’s innovative flow swaps and continued network expansion are significant. This fueled altcoin RUNE’s bullish rally and separated it from the broader market downturn. That said, it’s worth noting that the indicators are showing that a potential correction may be imminent. It’s important to remember that this makes vigilance a wise strategy for investors.
