ThorChain’s native token RUNE continues its upward momentum today, surging 9% to around $1.9. Looking at September overall, RUNE has pumped over 30%, becoming one of the top performing cryptocurrencies this month. But what’s driving this growth for RUNE?
According to crypto analyst hitesh.eth (@hmalviya9 on Twitter), the key factor is the accelerating speed of Thorchain’s flywheel mechanism. He explains that Thorchain has burned 121,000 RUNE tokens today, and a total of 1.1 million RUNE over the past 40 days.
Additionally, there are currently 442 loans opened on Thorchain compared to just 10 loans closed. This flywheel operates on the principle that more opened loans leads to more RUNE being burned, resulting in positive price action. In contrast, more closed loans mean new RUNE is minted, potentially causing negative price action.
In addition to the accelerating flywheel mechanism, the RUNE chart also shows a potential cup and handle pattern forming. This continuation structure has seen RUNE pumping in a wave between $0.905 and $2.028.
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RUNE is now approaching critical resistance at $1.973. If it can break above this level, the cup and handle structure points to further upside. The measured move target based on this pattern sits around $2.50.
With the flywheel spinning faster and RUNE flashing bullish technical signals, the ongoing uptrend looks poised to continue. Key resistance stands at $1.973, where a breakout could propel RUNE significantly higher based on the cup and handle pattern that appears to be forming.
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