The ThorChain price has defied gravity in the past few days as investors cheer the recent additions to its platform. RUNE, its native token, is trading at $7.60, which was the highest level since January this year. It has risen by over 142% from the lowest level this year.
The main reason why the RUNE price has risen sharply recently is the developer’s announcement that it will launch a synthetic derivatives platform. For starters, derivatives are financial products that track real assets’ performance. So, for example, it is possible to create a synthetic asset of assets like the US dollar, euro, and stocks like Microsoft and Google.
In the past few months, cryptocurrency derivatives have become popular among investors. Think of an asset like Wrapped Bitcoin that is currently valued at over $10 billion. Also, think of a blockchain platform like Synthetix that is currently valued at almost $1 billion. Synthetix is a platform that also enables people to create their own derivatives.
Still, there is a sense in which the fear of missing out (FOMO) has pushed the ThorChain price significantly higher. We have seen this over and over again. For example, in 2021, we saw the Shiba Inu price soar simply because it got a Binance listing. Therefore, there is a likelihood that the coin will start dropping as investors take profit.
ThorChain price prediction
The four-hour chart shows that the RUNE price has been in a strong bullish trend in the past few weeks. This trend accelerated when the price moved above the key resistance level at $6.05, which was the highest point on March 4th. It has managed to move above the 25-day and 50-day moving averages and is along the upper side of the Bollinger Bands. Oscillators show that it has moved to the overbought level.
Therefore, there is a possibility that the ThorChain price will start a pullback in the near term. If this happens, the next key reference level to watch will be at $6, which is about 20% below the current level. This view will be invalidated if the price rises above $10.