THORChain announces integration of XRP stagenet ahead of the mainnet network launch

• THORChain announced on Tuesday that its stagenet development of its XRP integration is nearing the final step, with mainnet activation imminent.
• This integration enhances THORChain’s economic model by increasing swap activity and protocol fees.
• The news failed to significantly impact RUNE price, THORChain’s native token, but suggests a positive outlook.

THORChain (RUNE) announced on Tuesday that its stagenet development of its Ripple (XRP) integration is nearing the final step, with mainnet activation imminent. This integration enhances THORChain’s economic model by increasing swap activity and protocol fees. The news failed to significantly impact RUNE’s price, with RUNE trading around $1.35 at the time of writing on Wednesday, but it suggests a positive outlook for the token.

THORChain’s XRP integration to boost multichain capacity

THORChain, a decentralized liquidity network with an interoperable blockchain that enables cross-chain token swaps in a non-custodial manner, posted an update on its official X account on Tuesday confirming that the stagenet deployment for XRP integration is at a near-final step, with mainnet activation imminent.

The deployment began on April 11, when XRP was integrated into THORChain’s stagenet.  Stagenet is a staging network – a test environment used by developers to deploy and test new features before they go live on the mainnet (the fully operational, public blockchain network).

The activation of the mainnet has yet to be announced, which means XRP swaps will be fully live on THORChain’s production network and accessible to all users for real transactions. Adding high-volume assets, such as XRP (the fourth-largest cryptocurrency by market capitalization, according to CoinGecko), enhances THORChain’s economic model by increasing swap activity and protocol fees. 

Historically, the integration of new chains, such as Dogecoin (DOGE) and Avalanche (AVAX), in 2021 has led to temporary spikes in trading volume and RUNE’s price. If history repeats, RUNE could expect a similar price rally.

However, the news about the XRP integration did not significantly impact RUNE’s price on Tuesday even as it suggests a positive outlook in the long term for the token as it expands THORChain’s ecosystem, enhances its cross-chain capabilities, and boosts wider adoption.

RUNE’s technical outlook suggests a rally if its 50-day EMA holds strong

RUNE price broke above the 50-day Exponential Moving Average (EMA) at $1.30 on April 24 and rose 7.63%. However, it has consolidated above this level over the last five days. At the time of writing on Wednesday, it hovers around $1.34.

If the 50-day EMA continues to hold and RUNE moves higher, it could extend the rally to retest its next daily resistance at $1.60.

The Relative Strength Index (RSI) on the daily chart reads 58 after being rejected from overbought conditions last week, indicating fading bullish momentum. However, the RSI still remains above its neutral level of 50 and has room for the higher leg.

RUNE/USDT daily chart

However, if RUNE fails to find support at its 50-day EMA, it could extend the decline to retest its next support level at $1.16, which aligns with the daily level.