Rain (RAIN) led the market with a daily gain of 23%, extending its three-day rally to almost 100%. The token is emerging as a major contender in the prediction market alongside Polymarket and Kalshi, despite continued regulatory uncertainty in the United States.
So what is fueling this rally, even without clarity on the future of prediction markets?
Rain Foundation pumps cash as TVL explodes
The main driver of this increase was liquidity. The Rain Foundation announced that it has added liquidity worth $100 million, with $50 million in USDT and the other half in RAIN tokens.
The move was part of preparations for the launch of Rain V2 ahead of the FIFA World Cup, aiming to capitalize on match activity like other prediction markets. This would open the protocol to high-volume trading and tighten spreads on the trading platform.
Additionally, RAIN achieved the third highest total value locked (TVL) among prediction market platforms. Its $100 million in TVL was behind that of Polymarket and Kalshi, which were $450 million and $250 million, respectively.
Additionally, the trading volume of the token increased, reaching $47 million. Arbitrage trading of the RAIN token was behind this increase.
For example, several wallets purchased RAIN on centralized exchanges like MEXC and BitMart and then sold on decentralized platforms like 1INCH. This activity was made possible thanks to the liquidity injected into the protocol.
Will RAIN price continue to rise?
On the charts, RAIN price surged after breaking out of a descending trend channel this week, reaching a new yearly high of $0.014. The rally lifted the altcoin more than 480% above its all-time low from nine months ago.
At press time, the altcoin also reclaimed the 100-day moving average (MA) as support, indicating that the bulls are gaining momentum. In fact, the Stochastic Momentum Index was 82, meaning the altcoin is overbought.
With a market capitalization of $8.89 billion, the altcoin consolidates its position as a leading platform in the cryptocurrency and predictions market.
This suggests a market capitalization of $10 billion, with more hype surrounding betting on FIFA World Cup matches. This increases capital inflows and commercial activity of the protocol among sports fans.
Traders should especially be wary of corrections that follow such robust price increases. Currently, the nearest resistance zone is around $0.02, which is 12% of the current price.
Final Summary
- RAIN rose 23% in one day and nearly 100% in three days after the foundation injected $100 million in liquidity.
- RAIN price surpassed a key level as the bullish momentum continued to accelerate.
