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THORChain (RUNE) surges to a 17-month high as sentiment becomes bullish

By:
on Dec 8, 2023
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  • THORChain token, RUNE, has been bullish since August.
  • A positive sentiment for the token coincides with a growth in non-RUNE assets.
  • RUNE’s bullish momentum could continue before facing resistance at $8.

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THORChain native token RUNE rose by 3% on Friday, extending its bullish momentum of about three months. The token reached a price of $7.2, the highest level since early May 2022. Should buyers maintain the bullish move and flip a potential resistance at $8, RUNE could be on for the next target at $12. But what is behind the market move?

THORChain functions as a decentralised Layer-1 liquidity protocol. The network provides much-needed liquidity for other networks. With this role, multiple wallets and exchanges use THORChain for their settlements. This has, in turn, boosted activity on the network.

Strong fundamentals boost RUNE sentiment and price

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The gains in the price of RUNE aren’t by accident, thanks to a major feature in the project’s tokenomics and role as a settlement layer. For each $1 non-RUNE asset deployed on THORChain, the network incentivises $3 of RUNE to be locked. Owing to this tokenomics feature, cryptocurrency project aggregator Kahuna rates THORChain a 9/10.

Since September, the tokenomics have boosted RUNE, with non-RUNE assets on the network recording surges. The surge has coincided with a persistent price increase of RUNE, helping the token recover from a low of below $1 in early August. Santiment data also showed a robust surge in investors’ social volume for the token in the second week of August.

Despite the social sentiment fluctuating afterward, RUNE has maintained momentum. The recent gains have been largely due to broad-based crypto recoveries, with most tokens in the green.

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However, it is also due to RUNE’s momentum and investors’ belief in the project’s credentials. Kahuna ratings give THORChain a robust 10/10 score on innovation and network security, underlining its credentials as a favourable and secure platform to invest.

The platform is also highly ranked for its leadership, transparency, and communication. As such, RUNE has emerged as an attractive platform for investors looking to grow their earnings by providing liquidity while borrowing at zero interest.

The position is evidenced by the continued growth of the THORChain community, which has amassed over 221,000 followers on X, one of the highest among L1 projects. Consequently, THORChain has often been termed a “Community-managed account”. As price trends show, investors could look for a potential Santa Claus rally should RUNE surpass the resistance at $8.

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