THORChain (RUNE) Breaks Out on Platform News Updates

Key Insights:

• THORChain (RUNE) continues an impressive run since a late February low of $3.01.
• Among the best performers of the top 100, new platform feature launches drive investor interest.
• Technical indicators are flashing green, with bullish chatter providing momentum.

THORChain (RUNE) is a cross-chain decentralized exchange built on Cosmos. The platform aims to provide cross-network liquidity by supporting the decentralized trading of crypto across blockchains.

Essentially, THORChain removes the need for intermediaries to support the trading of non-native cryptos. It means that traders can swap tokens across different networks.

THORChain March Breakout Impresses

For the current month, RUNE is up an impressive 92.3%. Recovering from a February low of $3.01, platform news updates have driven RUNE to a Tuesday and current year high of $8.00.

Following a 14.3% jump on Monday, RUNE rose by 5.91% on Tuesday, to end the day at $7.71.

Last week, THORChain released its Synthetic Asset trading feature. Synthetic Assets allows traders to trade tokens backed by target crypto and RUNE in a 50:50 split. The key to the new feature is no reliance on wrapped assets.

There was also news of THORChain planning the launch of Thorfinance (Thorfi). Thorfi supports borrowing and lending. There was also the talk of a stablecoin THOR.USD, which would follow a similar model to TerraUSD and LUNA.

With LUNA and TerraUSD getting plenty of investor interest, the market is betting on a similar breakout for RUNE, providing momentum.

RUNE Price Action

At the time of writing, RUNE was down by 4.01% to $7.40.

Technical Indicators

RUNE will need to move through the day’s $7.63 pivot to make a run on the First Major Resistance Level at $8.08. RUNE would need the broader crypto market to support a return to $8.00 levels.

An extended rally would test the Second Major Resistance Level at $8.44 and resistance at $9.00. The Third Major Resistance Level sits at $9.25.

Failure to move through the pivot would bring the First Major Support Level at $7.27 into play. Barring an extended sell-off, RUNE should steer clear of sub-$7.00. The Second Major Support Level sits at $6.82.

Looking at the EMAs and the 4-hourly candlestick chart (below), it is a bullish signal. RUNE holds above the 50-day EMA at $6.28.

This morning, the 50-day EMA has pulled away from the 100-day EMA, delivering strong support. The 100-day EMA pulled away from the 200-day EMA, bringing $9 levels into play.

Avoiding the 50-day EMA would support a move through the current year high of $8.00 to target $10.00.