THORChain (RUNE) has been soaring for several days, attracting investors and traders from all around the world. The coin is still far from its all-time high of $21.26 set on May 19th of this year, and although some are wondering if it will ever reach that level, others are wondering if it can go even higher, possibly getting $50 before the year is over.
What is THORChain about?
THORChain is a decentralized liquidity protocol that allows users to exchange digital currency assets across various networks without losing complete custody. Put another way; it will enable you to swap one asset for another without requiring permission, removing the requirement for order books as a source of liquidity. The project’s utility token is the RUNE token, allowing users to participate in project development and future decisions.
The RUNE token was launched more than two years ago, in July 2019, but its price stayed largely stagnant until a year later, when it began to rise in July 2020. The coin went from $0.5 in July 2020 to $1.16 on December 31st in the same year.
The project soared in 2021, moving from $1.16 to the ATH of $21.26 in just five months. Along the way, it ran with resistance at $4, $6, $10, $14, $16, and $18. But it was the one at $20 that stopped it from going much higher, and even if the coin did reach $21.26, it was mainly because of the significant momentum it had built up throughout its quick advance.
Following the achievement of the milestone, Bitcoin’s price plummeted, dragging the rest of the market — including RUNE — down with it. RUNE was already too weak to withstand the drop since its price had been attempting to withstand its adjustment; thus, when BTC fell, RUNE quickly followed.
The coin plummeted to $7, where it found support and recovered to $14. However, this was only a brief period of stability, as the currency began to fluctuate, going up and down for the next few months. While the price fluctuated less, the trend remained unfavorable, and it continued to fall until it reached $4.
This happened in late July, just over two years after the debut. On the other hand, RUNE began to rebound after hitting bottom, and by the end of the month, it was already attempting to break through its new largest resistance level at $12. This obstacle remained in place until yesterday, October 24th, 2021, when RUNE finally broke through after gaining 18% in a single day and 64.9 percent in the previous week.
Why did RUNE skyrocket?
From a fundamental standpoint, THORChain’s year was not particularly successful. A succession of procedural flaws resulted in an $8 million drain on the company’s reserves. These attacks were a major factor in the stock’s price plummeting after it peaked high.
The developers, on the other hand, did not give up. Instead, they began working on alternatives, and the protocol announced last week that it is ready to reopen its Ethereum pool and other cryptocurrency and BTC-based pools.
On October 21st, when the project’s price soared, the trading services were revived on all supported blockchain networks. Bitcoin, Litecoin, Binance Coin, Ethereum, and Bitcoin Cash are among the pools in concern, and all of them are currently being reopened.
Furthermore, the data reveals that there is significant unmet demand for trading on the protocol, as evidenced by a near-instantaneous $2 million in trading activity for ERC-20 tokens just minutes after the pools were reopened. In short, the traders had been anticipating this moment for a long time, and now that it had arrived, they wasted no time returning to the project.
However, the forthcoming launch of new projects on the THORChain network is another important cause of the RUNE price’s bullishness. The projects will also be featured on the Thorstarter (XRUNE) decentralized launchpad built on RUNE.
Can THORChain Hit $50?
Everyone is now wondering how far RUNE can go. Some speculate that the reopening of the pools, as well as the project’s overall return. It will see its token’s price return to its all-time high, but that it could also continue to rise, as it would have if its previous surge had not been disrupted by the exploits and price crash that hit the entire crypto industry.
The coin may reach $50, but only with a strong pull. Meanwhile, the market appears to be gearing up for another bounce, as many experts anticipated back in January. Some anticipated BTC would hit $90,000 before the end of the year at the time. That prediction may yet come true. The coin hit a new high only a day ago. While it is currently trading at $61.9k after falling from over $67k, it has recovered from a weekend plunge.
RUNE will undoubtedly follow Bitcoin if a new rise begins. Visit our investing in THORChain guide to learn more about this project.
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