Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- RUNE has been in an intense uptrend and things may not slow down much in the coming weeks
- A retracement to $2.3 could be ideal, but bullish strength may not allow it
THORChain [RUNE] up just over 81% in price in the last ten days. Trading volume has been growing in recent days, and technical analysis showed that the next major resistance region was at $3.
How much is 1, 10 or 100 THOR worth today?
The latest surge was just one move in the uptrend that RUNE has been following since early August. The strong gains came along with Bitcoin [BTC] although not in lockstep like other altcoins.
The retest of the $1 zone in August boosted long-term bulls
Source: RUNE/USDT on TradingView
As of November 8, 2022, RUNE has been trading within a range of $1 to $2. From late April to mid-June, RUNE was in a downtrend even on the daily time frame, falling below $1 to reach $0.782.
In late June and again in early August, the same $1 level was retested as support. This also caused a bullish structure to emerge on the D3 chart. The buying volume has been phenomenal since then and was reflected in the On-Balance Volume (OBV). This indicator continued to rise.
The Relative Strength Index (RSI) on the three-day chart was also above 70, signaling strong bullish momentum on the higher time chart. The Fibonacci levels showed $2.72 and $3.15 were the next resistance levels to watch out for. Traders may not yet be justified in taking short positions on RUNE unless they are based on hourly or lower time frames.
The steady spot CVD trend was another factor in the bulls’ favor
Source: Coinalyse
The Open Interest (OI) started to rise again on the one-hour chart, while RUNE prices also rose. This was a sign of bullish conviction in the futures market. The Cumulative Volume Delta (CVD) spot was also in a steady uptrend, highlighting the demand behind RUNE.
Realistic or not, here is THOR’s market cap in BTC terms
Above $3, the $3.8 and $5 levels were the next significant resistance levels. In particular, the $3.7-$4.2 range, which consolidated in January and February 2022, could provide trading opportunities.