RUNE just concluded a 52% drawdown from August highs and investors might be in for interesting times ahead. The recent low resulted in a retest of its previous bottom range in June. On top of that, THORChain just announced a new development that might facilitate more liquidity into RUNE.
It announced the launch of the Avalanche C-Chain $USDC pool on its network. The liquidity pool will open up more liquidity to flow into the network, while potentially boosting demand for RUNE. The announcement also revealed that a USDT pool will be next.
Avalanche C-Chain $USDC pool is now active and open for trading on THORChain ⚡️ $USDT will become active at the next pool churn (~3 days) if the pool achieves a depth of >10k RUNE. https://t.co/emvW9DOidG
— THORChain (@THORChain) October 5, 2022
This news came at an ideal time when the cryptocurrency was bouncing off its bottom range. It was after a 52% retracement from August highs, which pushed the price back to June lows.
The news of the USDC liquidity pool has the potential to supercharge RUNE’s recovery while boosting investors’ excitement.
RUNE had a $1.63 press time price action which represented a 9.8% upside from its $1.47 bottom on 3 October. Its RSI registered a healthy relative strength boost, thanks to buying pressure at the lower range.
Here’s AMBCrypto’s price prediction for RUNE
Going for the bear’s head?
Some of RUNE’s on-chain metrics supported a bullish short-term outlook. For example, its developer activity metric pivoted on 28 September, followed by a strong activity. The latter was at a new 4-week high, at press time.
This strong development activity might be related to the previously mentioned newly launched USDC liquidity pool. The sharp development may boost investors’ sentiment, favoring the upside especially now that RUNE is recovering from the lower range.
A combination of the aforementioned factor appears to have contributed to a favorable sentiment. This was observed as a sharp uptick in the weighted sentiment metric between 3 and 4 October. The sentiment quickly shifted to positive but has since then dropped to negative territory.
The weighted sentiment outcome may explain why the upside has been limited so far. Social dominance highlighted a similar outcome where a sharp uptick occurred, followed by some downside. This suggested that demand was not sustained or that there was short-term profit-taking.
Well, RUNE’s price action so far confirms that there is demand at the bottom range. However, it might not be enough to sustain a higher upside, but the recently announced USDC liquidity pool might strengthen the sentiment in favor of the upside.