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Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- RUNE saw a short-term shift in sentiment after the rejection at $5.38.
- The higher timeframe market structure and recent breakout past $2 allowed swing traders to maintain their bullish bias.
THORChain [RUNE] looked a huge amount Bitcoin [BTC] traded on its market. The decentralized liquidity protocol allows users to exchange one asset for another without the need for order books to secure liquidity.
This led to BTC maxis belt because it is the only intermediary where BTC can be traded. This could further strengthen the bullish sentiment behind RUNE.
The break above $2 was decisive for the bulls
Source: RUNE/USDT on TradingView
The flow of capital into the altcoin market saw many assets rise almost straight past strong resistance zones with higher timeframes. RUNE was no different and saw an uptrend emerge after beating the $1.94 resistance level.
This level has produced good results in 2023, but since the breakout, RUNE has risen another 180%. The On-Balance Volume indicator also broke past a local resistance to reflect massive bullish dominance.
The buying volume pushed RUNE to $5.38, but a decline to $4.82 was seen in the last few hours. The RSI stood at 89, reflecting the enormous upward momentum. If the $4.8-$5 zone is retested as support, $6 and $7.6 would be the next targets.
The lower timeframe price charts showed that the $4.6-$4.8 region was a good place to buy RUNE. However, a drop below $4.6 could take the price to $3.9 and $3.5, meaning buyers should manage risk accordingly.
Has short-term sentiment towards RUNE changed?
Source: Coinalyse
The Open Interest (OI) saw a decline over the past 48 hours after RUNE was rejected at $5.38.
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The price drop and OI reflected bearish sentiment in the market in the short term. However, spot CVD continued to rise.
This meant that demand was still present on the spot market. The funding rate was also very positive and indicated that a majority of the market was on the bullish side of the fence.