- While activity around THORChain increased over the past week, RUNE’s value rose nearly 30%.
- Despite the price increase, traders continued to open short positions in the futures market.
THORChain’s native token RUNE ended last week’s trading session as the highest-grossing cryptocurrency asset. At the same time leading coins such as Bitcoin [BTC] and Ethereum [ETH] suffered astonishing price drops.
Up nearly 30% in the past seven days, RUNE’s recent price surge could be partly attributed to its low positive correlation with BTC, whose value fell 11% over the same period.
Read about RUNE’s price prediction for 2023/2024
As before reportedis the price increase of RUNE due to the introduction of Streaming swaps and the extension of the protocol to several major networks, such as Cosmos [ATOM] and avalanche [AVAX].
Should RUNE holders expect it to continue this upward trend this week?
RUNE welcomes the new week and promises more profit
At the time of writing, RUNE was trading at $1.69. An assessment of price movements on a D1 chart revealed the presence of significant bullish sentiment among daily traders.
The current RUNE market has been in a bull phase since August 8. Observing the asset’s Moving Average Convergence/Divergence indicator (MACD) confirmed the upward intersection of the MACD and trend lines on that day, ushering in the bulls.
When the MACD line crosses the trendline upwards, it means that the short-term moving average is above the long-term moving average, which is a bullish signal. Since the crossing took place, the value of RUNE has increased by 88%, data from CoinMarketCap revealed.
Source: CoinMarketCap
The positive directional index (green) at 36.75 confirms the bull’s re-entry on August 8 and has since positioned above the negative directional index (red) at 5.09. When an asset’s Directional Movement Index indicator is framed this way, it is a strong bullish signal and means that the upward price movements are stronger than the downward price movements.
Furthermore, RUNE’s Aroon Up Line (orange) at 85.71% at the time of writing confirmed the strength of the price increase.
The Aroon indicator is used to identify trend strength and potential trend reversal points in the price movement of a crypto asset. When the Aroon Up line is close to 100, it indicates that the uptrend is strong and the most recent high was reached relatively recently.
Source: RUNE/USDT on TradingView
Heed the warning signs, dear RUNE holder
While RUNE seemed poised to continue its upward trend, some indicators pointed to a downward price correction. First, the wide gap between the upper and lower bands of the token’s Bollinger Bands indicator signaled volatility.
Is your wallet green? Check out the RUNE Profit Calculator
While the gap was a result of increased trading activity around RUNE, it suggested that the altcoin remained at risk of experiencing large swings in either direction.
Also, key momentum indicators were at overbought highs at the time of going to press. The Relative Strength Index (RSI) and Money Flow Index (MFI) were spotted at 77.79 and 83.41 respectively. At these values, buyers typically find it difficult to sustain a further increase in price and this may lead to a fall in the value of RUNE.
Source: RUNE/USDT on TradingView
In the futures market, traders on leading exchange Binance continued to open positions at the price of the token at the time of writing. Since August 15, only short positions are taken.
Source: Sentiment
The situation was no different in the general market, with short positions over long positions. Should sentiment remain sour, the price of RUNE could see downward pressure in the coming days.
Source: Coinglass