THORChain’s (RUNE), has experienced a significant rally over the last month. From its 2022 low of $3, with 30 intra-day rallies, the native token for this cross-chain bridge decentralized rose to current levels.
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At the time of writing, RUNE’s price trades at $9 with an 11% profit in the past 24-hours and a 17% profit in the past week.
According to analyst Alerzio from research firm Santiment, RUNE’s current rally has traders wondering if the token will be able to sustain its gains. It is possible that the crypto market could revert to the lows it was at if bulls cannot push beyond $10 or if there are more bearish turns in the future.
The analyst believes that RUNE’s current rally has been “healthy”. As the price move upwards, the token’s trading volume followed standing at its highest since April 2021.
Additionally, Weighted sentiment, which is used to gauge market sentiment across social media platforms suggests that there are more gains. The token claims to its current levels, which are a positive sign, is this metric?
In the crypto markets, operators believe that prices tend to move opposite to the crowd’s expectations. A negative sentiment can lead to more RUNE gains. The analyst said that “the greed is out” of the market, for the time being.
The bulls are also supported by the futures market, as the funding rates for Binance and FTX have barely returned from the negative to positive territory on recent price movement. An analyst said:
Binnance’s funding rate is positive (not too much) while FTX’s funding rate is about to get into the positive areas. this can be considered as a “not very good, but not too bad” signal.
Potential Headwind to Future Gains for THORChain(RUNE)
The analyst believes that THORChain (RUNE) developer activity could be a long-term obstacle for RUNE’s price. The analyst believes that the project is in dire need of new ideas and suggestions to maintain its momentum. According to the analyst,
RUNE’s previous rally was a healthy one. Although there are still price opportunities in the short term, long term hodling prospects for RUNE are not promising because of a lack of development activity.
THORChain recently introduced synthetics assets, a new feature that allows users to access its network. Users can now access tokens that are tied to the prices of BTC and ETH.
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This will allow users to access new investment products and strategies. An official THORChain blog post at the time stated that:
Your funds will also be vestable as you have the ability to gain access to yield-generating vaults. Access to minting synths is limited and will depend on the liquidity in the THORChain pool.