RAIN spent most of July and part of the first half of August reversing June’s rally before settling between $0.0128 and $0.0139. That month-long range slowed the decline and has helped form a base for this new upswing.
Over the last 24 hours, RAIN [RAIN] surged by 20.63%, reaching a high of $0.0176. This was after breaking through the resistance level that was previously formed by the range of $0.0165 to $0.017.
Stronger volume accompanied the move, showing that participation increased as the price left its established range.
The rally then reached $0.019503, where selling pulled the price nearly 10% below the session high.
After this sell-off, however, RAIN still traded above the June high, which was the main resistance. This resulted in the token retaining the breakout and keeping it from reverting back to its prior trading range.
The large upper wick on the bar clearly shows the presence of supply around $0.0195. Conversely, the $0.0165 – $0.017 zone serves as the closest potential support level.
Therefore, going forward into their next sessions, RAIN will be trading with an established breakout but also a significant amount of overhead resistance.
However, moving the price above $0.017 remains key to continuing to sustain the current uptrend.
RAIN burn and Hyperliquid listing drive the surge
The 20.63% surge followed two developments that changed its circulating supply and access across decentralized markets. First, the DAO-approved burn sent 7.42 billion RAIN, worth $108 million, to a null address permanently.
That transaction reduced circulating supply by 1.035%, removing tokens that could return and create selling pressure. Although the reduction was modest, its permanent execution gave traders a supply event to price.
At the same time RAIN became listed on Hyperliquid, allowing traders a new permissionless entry point to trade RAIN via an on-chain order book. Traders may trade on Hyperliquid and immediately have trades settled directly into their own digital wallets.
This will allow users to trade the token outside of the custodial environment. The timing of this release also coincided with the smaller RAIN supply being made available to a larger number of people, as evidenced by increased activity in advance.
In addition to providing additional liquidity for the altcoin, the listing may be able to affect the long-term supply of RAIN via the tokenomics of the Rain Protocol.
Rain Protocol’s token mechanics allocate 2.5% of all trading volumes towards buybacks and burns. Thus, the amount of turnover generated by traders can also have an affect on how frequently buyback mechanisms are utilized.
In other words, the ability to generate turnover can help to reinforce scarcity. On the flip side, low volume could potentially limit the long-term effectiveness of the listing.
Final Summary
- Rain [RAIN] surged 20.63%, with $0.0165–$0.017 now supporting the breakout.
- Hyperliquid volume must sustain RAIN’s recurring buybacks and burns.
