Metamask’s Thorchain Integration Fuels Bullish Momentum for RUNE
Key Insights:
- Metamask-Thorchain Partnership Drives RUNE’s Bullish Surge.
- Decentralization Trend Boosted by Metamask’s Thorchain Integration.
- RUNE Nears Key Resistance Levels Amid Positive Market Response.
Metamask recently revealed that it has become compatible with Thorchain, the decentralized platform aimed at streamlining cross-chain transactions in the DeFi sector. This update is pertinent for more than 30 million Metamask users and could have a noteworthy impact on Thorchain’s native cryptocurrency, RUNE, which has seen a surge following the announcement.
Decentralization Gets a Boost as Risks in Centralized Platforms Surface
The crypto market is undergoing important changes, with an increased focus on decentralized over centralized exchanges. The failure of numerous centralized platforms underscores the disadvantages of a custodial approach. Metamask, with its wide user base and self-custody features, adds another layer to this trend. The addition of Thorchain to its supported platforms is notable for two reasons.
Firstly, it reflects the shift toward more secure, decentralized trading options. Secondly, it brings Thorchain closer to overcoming one of the most daunting challenges in decentralized finance, simplifying cross-chain trades. On centralized platforms, asset swapping between different blockchains is relatively straightforward. However, accomplishing this in a decentralized setting is complicated due to limited cross-chain communication. The compatibility between Metamask and Thorchain could ease this bottleneck.
RUNE Sees Positive Market Response: A Closer Look at the Data
Following the announcement, Thorchain’s native asset, RUNE, has traded at an uptick. At the time of this report, it stands at $1.91, a 10.68%% increase in the past 24 hours. This upward movement coincides with favorable on-chain metrics, including a rise in weighted sentiment and trading volume over the last week.
RUNE/USD 1-day price chart (Source: CoinMarketCap)
Despite this, traders should exercise caution. RUNE is approaching what technical analysts term “overbought” conditions, a zone often preceding a market correction. Furthermore, the cryptocurrency is nearing a resistance point that previously prompted a downward adjustment in August. Nonetheless, the general market trend remains bullish, which could mitigate the risk of a sharp reversal.
As Thorchain enhances its features, especially in cross-chain trading, it could gain more attention from Metamask users. This may generate further demand for RUNE, maintaining its upward trajectory for an extended period.
A Week of Favorable Tidings and Technical Milestones
Besides the volume surge, RUNE has been basking in a slew of positive news. MetaMask’s recent favorable update seems to have acted as a tailwind for the token. Consequently, over the past week, RUNE has risen by an impressive 19.95%, with its market cap touching $636,588,998. As a result, the cryptocurrency now sits as the 52nd largest in the market.
RUNE/USDT daily chart (Source: TradingView)
Historically, RUNE had been trading within a specific price channel, ranging between $1.345 and $2.050 for the past two weeks. Significantly, the cryptocurrency is attempting to break this upper resistance. If it closes a daily candle above the $2.050 mark, a climb towards $3.010 is conceivable. However, a failure to break this resistance could result in a correction back down to $1.345. Consequently, increased selling pressure could further push the price to $1.080.
Besides watching the price channel, investors and traders should pay close attention to the daily Moving Average Convergence Divergence (MACD) line. Over the past 48 hours, the MACD line crossed below its signal line, indicating a bullish trend reversal for RUNE. This significant technical flag suggests that RUNE’s momentum has shifted from bearish to bullish.
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