- RUNE’s social dominance increased sharply, reflecting its popularity.
- The token’s trading volume dropped along with its price over the past 24 hours.
THORChain [RUNE] showed remarkable performance last week with a double-digit price increase. But the scenario changed in the last 24 hours when the token’s map turned red.
Is this a short price correction, or will bears push the token’s price further down?
THORChain’s bullish week
CoinMarketCaps facts revealed that RUNE investors had a profitable week as the token’s value increased by more than 25% during that time.
However, the bears have taken control over the past 24 hours and have driven down THORChain’s value by more than 2.5%.
At the time of writing, RUNE was trading at $3.91 with a market cap of over $1.3 billion, making it the 52nd largest crypto.
The weekly price increase increased RUNE’s social dominance, reflecting a rise in popularity. However, after a big rise on August 16, RUNE’s weighted sentiment fell.
This suggested that bullish sentiment around the token was waning.
Source: Santiment
However, the recent price drop could be short-lived as the token geared up for a massive breakout. Basically AMBCrypto reported rather that RUNE could reach $5 soon.
World Of Charts, a popular crypto analyst, recently posted a tweet revealing a falling wedge pattern on THORChain’s map.
The pattern emerged in November 2023 and since then the price of RUNE has been consolidating within it. At the time of writing, the token’s price was on the verge of a breakout.
According to the tweet, in the event of a breakout, investors could witness a 200% bull rally in the coming weeks or months. The bull rally could see the token reach $10.
Source:
What statistics suggest
The good news was that although THORChain’s price fell over the past 24 hours, trading volume also fell by 32%. Such incidents often indicate a trend reversal.
Our look at Coinglass’ data showed that RUNE’s Open Interest also fell. In general, a decline in Open Interest also suggests that the current price trend is likely to change.
Source: Coinglass
Read THORChain [RUNE] Price prediction 2024-25
The MACD also showed a bullish crossover. Similarly, the Chaikin Money Flow (CMF) registered a rise, indicating that RUNE was on track to recover $5 in the coming days.
However, the Relative Strength Index (RSI) registered a slight decline and headed towards the neutral point. This indicated that the ongoing price decline could continue, sending RUNE down to $2.9.
Source: TradingView