Connect with us
Active Currencies 15475
Market Cap $3,339,611,452,611.30
Bitcoin Share 58.18%
24h Market Cap Change $1.58

RUNE faces volatility after whale’s panic sell-off: What about recovery?

2min Read

RUNE fell 15% but began recovery, with potential bottom at $4.50.

Rune

Share this article

  • RUNE saw a sharp 15% drop, likely triggered by panic sell-off by a major whale.
  • Price action has started recovery and increased volume could spark a real bounce.

RUNE, the native token of THORChain, experienced a sharp 15% drop in the past 24 hours as of press time, likely triggered by panic following a major whale’s sell-off on Kraken.

As of press time, the whale had withdrawn 2.85 million RUNE, valued at approximately $12.35 Million, and sold a portion of it through ThorSwap for Bitcoin [BTC].

The whale has since converted 9.69 BTC, which was moved entirely to Kraken, while the remaining 2.7 million RUNE tokens were sent over to Binance.

RUNE

Source: Onchain Lens

Impact of whale sell-off on RUNE’s price

The whale sell-off had an immediate effect, pushing the price of RUNE downward. However, it did not seem to pose a significant long-term threat to the token’s future value.

THORChain, being a Layer-1 Blockchain DEX with extensive usability, has continued to support cross-chain swaps, especially for major Layer-1 blockchains, sustaining its strong adoption potential.

The RUNE price on the 4-hour timeframe began showing signs of a recovery despite a lack of a clear signal from indicators, which often react more slowly to abrupt price shifts.

RUNE/USDT hinted at a recovery attempt after it bounced from the $4.50 range highlighting early buying interest. A suggestion that this level could serve as a new support region.

After failing to maintain its support at the ascending trendline, RUNE fell below the $5 level and subsequently stabilizing around $4.50.

Source: Trading View

The MACD indicator showed a negative crossover, confirming that bearish pressure had dominated the recent market action.

Nevertheless, the recent histogram bars indicated a potential slowdown in selling momentum, which gave hope to investors about a gradual recovery.

However, the previous ascending trendline, which once acted as a support level, turned into resistance, and now RUNE needs to regain momentum and break above this level to signal a bullish reversal.

If RUNE managed to sustain a move above $5.5, it could eventually climb towards $7.30, the prior high. However, a confirmed reversal would require more buying volume and a clear breakthrough of these resistance levels.

Volume and TVL

Meanwhile, the weekly trading volume for RUNE surged to an all-time high of $78 million, reflecting growing market interest despite recent volatility.

Additionally, the total value locked (TVL) of Bitcoin on THORChain has tripled since 2023, underscoring the increasing adoption of THORChain’s cross-chain liquidity services.

These factors suggest that although RUNE faced short-term selling pressure, the long-term fundamentals remained intact, and future price action could benefit from renewed market confidence.

rune

Source: Flipside

Share

Lennox is a professional financial market analyst who's enthusiastic about blockchain, cryptos, and web3. He started blogging about cryptos back in 2019 and has since never looked back. His work revolves around looking at crypto-projects analytically on a technical and on-chain level, while also making sure it's palatable to the general audience.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.