RAIN reversed June’s rally for the majority of July and a part of first half August, before stabilizing between $0.0128-$0.0139 The range of a month slowed down the fall and helped to form a basis for this recent upswing.
In the past 24 hours RAIN [RAIN] The price of the coin soared 20.63% to $0.0176. The price increased after it broke through the previously established resistance of the $0.0165-$0.017 range.
As the price began to move away from the established range, the volume of participants increased.
The price fell to nearly 10% less than its session high at $0.019503.
RAIN, however, still trades above its June high which is the major resistance. The token retained its breakout, and was able to avoid reverting to the trading range it had previously been in.
The bar with the larger upper wick clearly indicates the existence of a supply level around $0.0195. Conversely, the $0.0165 – $0.017 zone serves as the closest potential support level.
As such, they will now be able to move forward with their sessions. RAIN Will be trading with a confirmed breakout, but also an important amount of resistance above the chart.
To continue the uptrend, it is important to move the price over $0.017.
The surge is driven by RAIN Burn and Hyperliquid Listing
This 20.63% increase was a result of two events that altered the supply chain and accessibility across all decentralized exchanges. The DAO burn, which was approved by the DAO, sent $7.42 billion worth of RAIN to a permanent null address.
This transaction removed tokens which could have returned and created selling pressure. Even though the amount of reduction was minimal, it had a permanent effect on price.
RAIN also became available on Hyperliquid. This allowed traders to access RAIN without requiring permissions via an online order book. Hyperliquid allows users to instantly settle trades directly into their digital wallets.
The token can be traded outside the custody environment. This release coincided also with the RAIN being available to more people.
The listing could affect RAIN’s long-term supply via tokenomics in the Rain Protocol.
Rain Protocol’s token mechanism allocates 2.5% of trading volume to buybacks, burns and other mechanisms. The volume of trades generated can have a direct impact on the frequency with which buyback mechanisms will be used.
The ability to create turnover is a way to increase scarcity. Low volume, on the other hand, could limit the effectiveness of the listing in the long term.
Final Summary
- Rain [RAIN] surged 20.63%, with $0.0165–$0.017 now supporting the breakout.
- RAIN buybacks must continue to be supported by hyperliquid volume.
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Source: ambcrypto.com
