The spotlight shines on RUNE, a summer breakout star of 2023, stirring whispers among crypto enthusiasts if it’s now a case of missed opportunity. Capitalizing on the ongoing market FOMO (fear of missing out), the native token has seen an astonishing +154% rally since mid-June and continues to set the pace among its peers.
For those trying to make sense of RUNE’s bullish ride, a look at THORChain’s unique tokenomics provides some clues. As the utility token primarily serves over-collateralization for its liquidity pools, the growing market ecosystem ultimately means an increasing amount of RUNE locked up. Shrinking supply coupled with heightened demand thus opens the door to upward price action, making this scenario a perfect storm for RUNE.
But does this mean it’s too late for latecomers to join the RUNE ride? Recent price action teeters on the brink of a localized retracement following an encounter with strong resistance at the $2 mark. Currently trading at $1.61, a decline of -8.8% over the previous 24 hours, RUNE is grappling with crucial support around $1.7.
The aftermath of this tug of war could plummet the price to the moving average levels of $1.275. The 200-day and 20-day moving averages converging at this price point could be a necessary pitstop for RUNE’s eager meteoric rise. Both these levels have largely remained untested during the bull run, suggesting a possible retracement to re-validate support.
On the other hand, conflicting signals are seen in the indicators, with the RSI heated at 71.89, hinting at an overbought scenario and a bearish outlook in the short-term. Conversely, the MACD tells a bullish tale, reflecting the rally momentum with bullish divergence at 0.0521.
A look at the risk: reward profile doesn’t paint an appetizing picture, standing at an unimpressive 1.17 – a poor entry point. However, in the world of cryptocurrency, where fortunes can flip in an instant, there might be some who would still dare to bet against the odds.
In parallel, an up-and-comer, Launchpad XYZ, aims to lower the entry barrier into the Web 3.0 era. With a varied offering of user-friendly tools and analytics, it looks to revolutionize trading in crypto markets. Its native utility token, $LPX, is predicted to create significant waves following its expected listing on major exchanges.
Is the cryptocurrency landscape in for another seismic shift? Current and aspiring investors alike stand at the cusp, waiting to leap into what could be the next big crypto wave. However, the old adage still rings true: Where there’s reward, there’s risk. Crypto investment is very much a high-stakes game where fortunes can rise or fall in an instant.
Source: Cryptonews
