ThorChain (RUNE) has been showing signs of accumulation after a dip, indicating a potential breakout. The coin’s price has been trading within a falling wedge pattern, and it is now on the verge of crossing the trendline resistance at $5. Once this breakout is confirmed, the price could surge towards its 38.2% Fib level near $6.20.
In terms of technical indicators, the token has already crossed the 20-day exponential moving average (EMA) and is attempting to breach the 50-day EMA. Both leading and lagging indicators suggest that the short-term upward movement is intact and that the token could see further gains.
The overall positive sentiment and recovery in the crypto market have also contributed to the recent surge in altcoins, including RUNE, which has seen a recovery of more than 30% this week.
At the time of writing, the price of RUNE is $4.45, with a 3.26% increase for the day. Trading volume has also increased by over 20% to $1.34 billion in the last 24 hours. The market cap stands at $1.34 billion, and the RUNE/BTC pair is at 0.0000687 BTC.
Analysts are neutral but believe that a breakout from the falling wedge pattern is likely, with a possible target of $6. The price chart from Santiment shows that there is a significant resistance level at $5.70, where sellers have a strong presence.
Weighted sentiment data is still negative, indicating a lack of clarity among investors. Price volatility data suggests a flat movement, with buyers gradually accumulating the token. The RSI curve has crossed into the overbought zone, signaling an imminent buying pressure.
Social insights show little investor interest with minimal online discussion activity. Development activity data has declined, reflecting concerns within the ecosystem that could potentially impact the token’s price.
Open interest has increased by 7% to $51.56 million, indicating a bullish conviction among investors. Long positions have been opened, anticipating a rise above the $5 mark.
Immediate support levels for the RUNE token are at $4.20 and $4, while key resistance levels are around $5.10 and $5.90.
Looking ahead, if the RUNE token breaks the $5 mark, investors anticipate a significant rally. Accumulation has already begun, and more long positions are being added in anticipation of the breakout.