• THORChain token RUNE price is at $1.56 after a 60% weekly rally driven by heightened activity on the THORSwap exchange.
• The relative strength index (RSI) is overbought and suggests RUNE could experience a stall in the near future.
• The increased activity may be attributed to Streaming Swaps, a feature recently introduced that allows users to perform optimized trades.
THORChain Token RUNE Price Risks A Decline Or A Stall
The THORChain token RUNE price changed hands at $1.56 in the European session on Aug 15, following a 15% daily uptrend which brought the token’s overall weekly gains to 60%. The trading volumes remained high in the previous two days, but the smaller-grain 2-hour chart shows a volume decline in the previous hours suggesting that closing above this line is not self-evident. Additionally, the relative strength index (RSI) has been charted through “overbought” territory for five days which could indicate that traders should exit the market to secure their gains.
Increased Activity On THORSwap Exchange
According to data tracker DeFiLlama, THORSwap experienced a 24% monthly increase in total value locked (TVL) with it standing at $62 million on Aug 15th. Furthermore, trading volumes surpassed $73 million on Aug 14th which was an 8-month high for the exchange with overall trading volume reaching $156 million. The increased activity might be attributed to Streaming Swaps, a feature introduced by team late July 2023 which allows users to split large transactions into sub-swaps and optimize their trades based on time or price execution.
Risk of Price Stalling
Although there are no certainties of decline in RUNE price due its recent rally, there is still risk of it stalling due to RSI being overbought and decreasing volume as seen from 2 hour chart indicating closing above resistance line isn’t self evident . However if fundamental developments continue then another leg up can occur after short term stall taking place .
Summary
The THORChain token RUNE price risks a decline or stall after its weekly rally of 60%. This was mainly driven by increased activity on THORSwap exchange especially due to Streaming Swaps feature recently introduced allowing users to optimize their trades further based on time or price execution . Despite this however , there is still very real possibility of short term stall taking place as indicated by RSI being overbought and decreasing volume from 2 hour chart . Nevertheless if fundamentals continue improving then another leg up can occur afterwards .
Conclusion
It appears likely that despite its recent strong performance ,the Runa token will experience some form of stall in near future given trends such as decreased volume from 2 hour chart and RSI going overbought . Though this doesn’t guarantee any declines ,it does suggest caution when investing in Runa tokens . On other hand if development continues then another increase may take place afterwards thus allowing investors potential further profits