- Thorchain price has made a spectacular recovery recently.
- Its price has risen by over 20% from its lowest level this week.
ThorChain price has made a strong recovery in the past few days amid a broad cryptocurrency rebound. RUNE has jumped to $8.9, which is the highest level it has been since Tuesday this week. It has risen by more than 20% from its lowest level this week, bringing its total market cap to more than $2.6 billion.
What is ThorChain and why is it rising?
ThorChain is a fast-growing blockchain platform in the decentralized finance (DeFi) industry. The network’s goal is to help provide autonomous cross-chain liquidity network. This means that Ethereum DeFi ecosystems can provide liquidity to other decentralized platforms like Avalanche and Polygon.
ThorChain has seen strong growth in the past few months. For example, it has 38 liquidity pools, with each pool having an average APY of 22%. It has a total value locked (TVL) of over $1.1 billion. Most importantly, the value of native on-chain swaps has increased to more than $5.9 billion. The number of monthly active users rose to 24,752 while the number of nodes rose to 102.
In March, ThorChain announced the next stage of its ecosystem. The developers announced that they would launch synthetic assets. These are assets that track other assets like forex pairs, stocks, commodities, and other assets like ETFs and cryptocurrencies. This is an industry that is currently dominated by the likes of Synthetix Network.
The main reason why the RUNE price is rising is that investors are cheering the growth of its network. It is also rising due to investors who are buying the dip now that it had dropped by over 45% from its highest level in March. So, what next for ThorChain?
ThorChain price prediction
The four-hour chart shows that the RUNE price has been in a strong bearish trend in the past few weeks. It dropped to a low of $7.41, which was the lowest level on March 18th. It also moved slightly below the 50% Fibonacci retracement level.
The coin has now rebounded and is approaching the 38.2% retracement level. It is also below the first support level of the Andrews Pitchfork tool.
Therefore, there is a likelihood that the coin will resume the downward trend considering that it is still below the 50-period moving average. If this happens, the next reference level to watch will be at $7.41, which was the lowest level this month. Learn more about Bitcoin Lifestyle, a robot that can help automate your trading.
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