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In recent times, the cryptocurrency #RUNE has undergone a transformative awakening, bolstered by a series of impactful catalysts. Having seen the last upswing more than 2 years ago, only those with diehard belief and determination have held the token, earning them the term "diamond hands" and long-term believers. A pair of influential drivers, namely lending (that may start today) and streaming swaps, have been the driving forces behind this resurgence, and at the forefront stands the thriving #THORChain community, one of the largest in the crypto realm. As the original holders of #RUNE begin to reorient their attention back to the token, a shift in sentiment is palpable.
An indicator of RUNE's renewed vigor is its ascent to a top 5 ranking in the cryptocurrency volume market by means of its automated market maker (AMM). Evident in its frequent record-breaking trading volumes, this achievement signifies the sustained momentum the token has amassed.
This resurgence traces its origins back to the initiation of three significant streaming swaps involving $ETH and RUNE. These swaps, totaling 2000, 2150, and 480 $ETH respectively, injected a consistent influx of buying pressure into RUNE throughout the day, even as the broader market experienced a downturn. A remarkable turn of events followed as a substantial short position emerged across exchanges, primarily on Binance. This position, valued at an estimated $8-15 million USD, piqued curiosity due to its coinciding timing with the launch of THORChain's lending program.
Remarkably, the chart analysis indicated that this position was "overbought" by technical analysis standards. Strikingly, the short position's owner now finds themselves paying a massive daily fee of 2.25% to maintain their stance. It is hypothesized that the average price of their short lies around $1.55, implying that they are currently in a losing position. Additionally, there is the possibility of influencer groups inadvertently fomenting confusion by promoting RUNE for shorting. Notably, there has been an emergence of influential figures advocating for short positions over several months, amassing a considerable following.
As the narrative unfolds, it becomes evident that certain entities seek to exploit the dynamics of opening positions alongside other influencers, subsequently broadcasting these positions to their followers before capitalizing on the ensuing volatility. This strategy has the effect of "dumping" on unsuspecting followers, ensuring profits for the initiators.
In light of these dynamics, it might be not a good idea to blindly follow such influencers and their technical analysis. Instead, exploring the fundamentals of projects like @THORChain through trustworthy sources might be a much better idea.
In conclusion, the resurgence of $RUNE is underscored by its recent awakening and driven by catalysts like lending and streaming swaps. The vibrant @THORChain community adds substantial value to this revival. As short positions attempt to navigate the evolving landscape, it's clear that strategic actions are influencing market dynamics, but the resilient $RUNE community remains steadfast, poised to reap the benefits of this transformative phase.
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I hold a position of RUNE, TGT and THOR and I am not a financial advisor.
