THORChain (RUNE) Price Outlook: What Does History Teach Us After Recent 16% Drop?

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THORChain (RUNE) Price Outlook: What Does History Teach Us After Recent 16% Drop?

In Brief

  • The price of THORChain (RUNE) has plummeted to $2.97, down by -16% over the past week.

  • Meanwhile, the market overall is down by -5.3% in comparison.

  • Past occurrences suggest that there could be upside potential.

THORChain has cratered sharply recently (-16% over 7-days), but previous signals suggest that there may be upside potential in the near future.

We can't predict the future, but we can analyze what happened in the past. Stack has analyzed the previous performance of THORChain (RUNE). We analyzed 27 historic occurrences where the price fell sharply over a 7-day period.

Why THORChain's Price Could Move Higher

Essentially, because of several similar occasions in the past. That is to say, we have seen this situation play out before.

Over those 27 past occurrences, we found that 85.19% of the time the price increase by a median 67.60% over the following 60 days.

For example, on December 12th, 2020 we saw the price of THORChain fall by -15.5%, only to rebound by 424.1% over the following 60 days.

What does this mean?

This is just a single, data-backed signal, based on a handful of previous periods. Lots of factors can influence the price of any investment.

Crypto prices are can be influenced by social media, developer activity, the number of exchanges and on-chain activity. Stack factors all these into it's ranking system to make it quick to compare the quality of different cryptos.

If you feel that other factors, including the broader crypto market, are favorable given the suggested 7-day holding period. Then it could represent a good time to invest, or a good entry point. We recommend that you do your own research (DYOR) before making any investment decisions.

What else might be moving the price?

As mentioned above, several factors can influence the price of any investment. Here are some that Stack can help you track.

The direction of the broader crypto market

The crypto market is also down by a median -5.3%. Many cryptos are highly correlated, especially to Bitcoin. So this is likely affecting the price. Going against the grain can work, but should be done with caution.

It's also work paying attention to the broader macroeconomic conditions. As crypto investing becomes more mainstream, it is increasingly becoming correlated to stocks as well.

Project developments

How active have the developer for THORChain been?

Over the past 4 weeks there have been 66 commits on THORChain's Github account. This compares to an average of 4 commits per week.

Spotting significant changes in developer activity can highlight potential new products being worked on and abandoned projects that might be in decline.

Social media

Social media can have a powerful effect on cryptocurrency prices. Even a single tweet can move markets (we're looking at you Elon). It's difficult to gauge sentiment just by scrolling, but you can use tools like Stack to monitor the growth of a project's followers.

THORChain's Twitter followers have increased by 0% over the past 7 days. You can view stats for other networks in the full report for THORChain.

Important Disclaimer: This material is for informational purposes only. None of the material or any material on the website should be interpreted as investment advice. Stack does not make any express or implied warranties, representations or endorsements whatsoever with regard to the material or related information. In particular, you agree that Stack and it's owners assume no warranty for the correctness, accuracy and completeness of the material.