THORChain’s native cryptocurrency RUNE concluded a retest of its June lows and even set a new 2022 low. Its recovery attempts may provide one of the best opportunities especially for the next major bull run and here’s why.
Here’s AMBCrypto’s price prediction for RUNE for 2022-2023
THORChain noted in one of its latest updates that its vaults were entirely on-chain. In addition, the post also bragged about its inability to block access, also known as immutability. This came amid increased concerns around its censorship.
Since THORChain's vaults are entirely on-chain and anyone can send an on-chain transaction; it's not possible to block access. https://t.co/Ol6GQfummx
— THORChain (@THORChain) October 17, 2022
Many crypto platforms have been called out for claiming to be immutable and censorship resistance. Yet every once in a while, something happens in the market and the same platforms act in a manner not-consistent with immutability. If THORChain’s claim happens to be true, then it puts the blockchain at an advantage especially when mass migration to DeFi starts taking place.
THORChain’s RUNE would enjoy healthy long term growth if censorship pushes people to favor DeFi. The cryptocurrency was heavily drawn down from its ATH in 2022. In fact, it just achieved a new 2022 low on 13 October.
Furthermore, RUNE traded at $1.53 as of 18 October, a 12% uptick after bouncing from its $1.368 new 2022 low.
Source: TradingView
RUNE’s latest bounce occurred within the same support line where it bounced from in June. This meant there was a considerable chance that it might achieve a sizable relief rally. The previous bounce saw the token deliver a 70% rally within the first seven days after bottoming out and over 100% to its current local top.
Will RUNE repeat history?
RUNE’s volume kicked off the week on a healthy note. It registered a significant increase on 17 October after relatively low volumes during the weekend.
Source: Messari
The observed volume increase reflected the bullish attempts during the same period. However, the volume was still lower than its weekly highs, which may indicate that investors maintain some caution.
RUNE’s market cap was already up by roughly $33.4 million in the last two days. That kind of liquidity, on usual terms, doesn’t flow back into a project of THORChain’s caliber unless investor expectations may have shifted.
Source: Santiment
The market cap was not necessarily a strong confirmation that the bulls were back. But, it did confirm strong accumulation at the recent bottom. THORChain topped off the above observations with a notable uptick in development activity.
Source: Santiment
An increase in development activity is often a healthy indication of healthy growth. It may further strengthen investor sentiment, encouraging more investment while the price still stuck to the lows.
