Terra’s UST-like native stablecoin, “Thorfi,” will be launched via THORChain.
Even as it travels inside a traditional bearish reversal structure, THORChain (RUNE) could maintain its upward pace in the coming weeks.
After testing a multi-month horizontal level support near $3.15, RUNE’s price has risen rapidly by over 165 percent in just four weeks.
Furthermore, as indicated in the chart below, its upside retracement has opened up the possibility of a longer bull run toward $11.50, approximately 45 percent higher than the present price level near $7.89.
In conjunction with the lower horizontal support, the $11.50-level coincides with RUNE’s multi-month falling trendline resistance, forming a descending triangle, a bearish setup.
After reaching $11.50, RUNE’s price could fall to $3.15, followed by another breakout to the negative.
Meanwhile, a long-term bullish situation exists.
In the descending triangle setup, adjusting RUNE’s bottom horizontal trendline points at reconstructing the pattern into a symmetrical triangle.
After a time of consolidation, a symmetrical triangle is a continuation pattern, which means it sends the price back in the direction of its prior trend. As a result, the triangle’s optimal profit goal is equal to the longest distance between its upper and bottom trendlines.
RUNE is expected to trade between $30 and $80 in 2022, depending on where it breaks out.
The fundamentals of THORChain were biassed in favour of bulls.
As the entire crypto market trades under geopolitical and macroeconomic uncertainties, the THORChain market appears to have a mixed future. Notably, the overall market capitalisation of all cryptocurrencies has dropped by nearly 25% year-to-date (YTD).
RUNE has defied the trend so far, climbing roughly 9% YTD. Surprisingly, the THORChain token has made the most of its gains in the last 30 days, increasing by over 100% due to the enthusiasm around its back-to-back feature releases.
For starters, on March 10, THORChain launched “synthetic assets,” a feature that allows users to trade tokens backed by 50% of their target assets and 50% of RUNE. Furthermore, the protocol allows traders to exchange synthetic assets for real ones at a 1:1 ratio.
— Harry.UST 🌖 (@CryptoHarry_) March 15, 2022
Meanwhile, THORChain core developer Chad Barraford stated that Thorfinance (Thorfi) — a protocol that integrates DeFi tools like lending and borrowing into the THORChain ecosystem — will be released on June 17th.
T2 also revealed a plan to create a native stablecoin named THOR.D, based on Terra’s burn-and-mint strategy with its native token LUNA and stablecoin UST.
Huge alpha is being dropped in this Twitter space by @CBarraford about Thorfinance (Thorfi). Target release for Thorfi is on June 17th. 👀
— Asian | 0xV (@Asian0xV) March 11, 2022
The upbeat news about RUNE’s adoption may provide additional support for its interim technical price goal of $11.50.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.