• THORChain token RUNE price risks a decline or a stall after a 60% weekly rally.
• The uptrend came on the back of heightened activity on the THORSwap exchange, possibly propelled by Streaming Swaps introduced in late July.
• Total Value Locked (TVL) and trading volumes have both increased significantly, however, an unencumbered price increase is not yet guaranteed.
THORChain Token RUNE Price Risks Decline or Stall
The THORChain token RUNE has seen a 60% weekly rally, however, it now risks a decline or stall in price. This uptrend was spurred by heightened activity on the THORSwap exchange and the introduction of Streaming Swaps late July.
Total Value Locked (TVL) Increases
Total Value Locked (TVL) has increased 24% month-over-month to $62 million on Aug 15th and trading volumes have surpassed $73 million – an 8 month high for the exchange. Overall trading volume on the network stands at $156 million.
Streaming Swaps Propel Uptrend
The possible reason behind this heightened activity is Streaming Swaps – a feature introduced by the team in late July 2023 which allows users to split large transactions into sub-swaps and get better pricing execution based on whether they prioritize time or price optimization.
Relative Strength Indicator Signals Overbought Market
The Relative Strength Indicator (RSI), which measures market sentiment and indicates when it is most profitable to enter/exit the market, has been charted as “overbought” for 5 days running – leading some to believe that a correction may be due soon.
Conclusion
While fundamental developments are encouraging, an unencumbered price increase is not yet guaranteed and there is potential for either further growth or correction of RUNE prices in the near future.