Thorchain RUNE/USD has collapsed from its recent highs above $13, registered on March 31, 2022, to $7.8, while the current price stands at $7.95.

For now, bears control the price action, the critical support level stands at $6, and if the price breaks it, it could be the beginning of a bigger downtrend.

Blockchain protocol for swapping cryptos

Thorchain is a blockchain protocol for swapping crypto-assets that is 100% autonomous and decentralized.

Thorchain was funded through an initial DEX offering (IDO) in July 2019, and it allows users to easily exchange cryptocurrency assets without losing full custody of their assets in the process.

Users can swap between blockchains directly from their wallets and earn a passive yield for providing liquidity.

The permissionless nature of the protocol has created a fast-growing ecosystem that is entirely community-driven, and it is important to say that all nodes on the Thorchain are only identifiable by their IP address and public key.

Dozens of anonymous node operators run the Thorchain protocol, and if the network is under-bonded, node operators must increase their bonds. On the other hand, liquidity providers must pool more assets if the network is over-bonded.

Thorchain is fully transparent about its security practices, and solvency can be fully verified on-chain. RUNE is the native token of Thorchain, it enables liquidity and is bonded to secure the network, but RUNE is not a governance token.

RUNE is trading down more than 35% from its recent highs, and the risk of further decline is still not over.

The impact of the Russian-Ukrainian war and the rising risks of the recession continue to worry investors, and risk-on assets tend to suffer in conditions like this.

Technical analysis

Thorchain (RUNE) has collapsed from its recent highs, and if you decide to buy this cryptocurrency at the current price, you should use a “stop-loss” order because the risk remains high.

The cryptocurrency market is losing its value this Monday, Bitcoin went below $41000, and this situation also negatively influences the price of RUNE.

Data source: tradingview.com

The critical support level stands at $6, and if the price falls below it, the next price target could be around $5 or even below.

The strong resistance level stands at $10, and if the price jumps above this level, it would be a signal to trade RUNE, and we have the open way to the $12.

Summary

Thorchain is a blockchain protocol that allows for decentralized swaps between any supported blockchain and earns yield from native assets for liquidity providers. The cryptocurrency market is losing its value this Monday, Bitcoin went below $41000, and this situation also negatively influenced the price of Thorchain (RUNE).

The post Should I buy Thorchain (RUNE) at the current price? appeared first on Invezz.