THORChain started as a small project at the Binance hackathon in 2018. The team behind the chain continued their research even after the completion of the hackathon. While working to create a fully functional cross-chain decentralized exchange, the THORChain team incorporated the Tendermint, Cosmos.SDK, and a working implementation of TSS.
Witnessing a good potential, the team started working on the project with a small seed round using the Instaswap protocol. It was first unveiled in the cosmos hackathon and slowly released a fully functional product under the name of THORChain.
THORChain is a decentralized liquidity protocol that allows the swapping of native assets between different blockchains such as Bitcoin, Ethereum, or Binance Smart Chain, to name a few. THORChain uses something called the liquidity pool model to maintain decent liquidity, where liquidity providers lock two assets in the pool. This pool is accessible by traders who intend to exchange their cryptocurrency, who give a small fee that goes back to the liquidity providers.
DeFi platforms’ trustworthiness and scalability have added wings to the THORChain network, and it is all set to explode in a highly scalable network.
THORChain Technical Analysis
Immediate Resistance: $6.6
Immediate Support: $5.75
THORChain packs a lot of potential in the crypto market, and its recent jump in the last week was on track to reclaim its former glory. But a significant profit booking at breakout levels has trapped this crypto asset into a consolidation zone. While trend lines indicate a breakout, it is trading in a sideways manner.
All it requires is little time and the release of new features; with the onboarding of considerable clients in the DeFi network, THORChain will be outperforming many other cryptocurrencies as per our THORChain price prediction. Buying at current levels is both non-risky and offers a good return potential. It’s all-time high of $22.14 on May 18 is not unachievable in terms of price action.
The current RSI level of 40 is indicating a neutral stance of traders towards THORChain. Investing in this cryptocurrency could provide a good profit in the near term.