Rune under the control of bulls as its rally gains serious momentum
- As activity around THORChain increased in the last week, RUNE’s value went up by almost 30%.
- Despite the price uptick, traders on the futures market have continued to open short positions.
THORChain’s native token RUNE ended last week’s trading session as the cryptocurrency asset with the most gains. At the same time, leading coins such as Bitcoin [BTC] and Ethereum [ETH] suffered bewildering price drops.
Up by almost 30% in the last seven days, RUNE’s recent price rally could be partly attributable to its low positive correlation with BTC, whose value declined by 11% within the same period.
Read about RUNE’s price prediction for 2023/2024
Should RUNE holders expect it to continue on this upward trajectory this week?
RUNE welcomes the new week, promising more gains
At press time, RUNE traded at $1.69. An assessment of price movements on a D1 chart revealed the presence of significantly bullish sentiments amongst daily traders.
The current RUNE market has been in a bull phase since 8 August. 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 trend line upward, it means that the short-term moving average is above the long-term moving average, which is a bullish signal. Since the intersection occurred, RUNE’s value has climbed by 88%, data from CoinMarketCap revealed.
Lending credence to the 8 August bull re-entry, the positive directional index (green) at 36.75 has since been positioned above the negative directional index (red) at 5.09. When an asset’s Directional Movement Index indicator is set up in this manner, it is a strong bullish signal, and it means that the upward price movements are stronger than the downward price movements.
Further, RUNE’s Aroon Up Line (orange) at 85.71% at press time confirmed the strength of the price uptrend.
The Aroon indicator is used to identify trend strength and potential trend reversal points in a crypto asset’s price movement. When the Aroon Up line is close to 100, it indicates that the uptrend is strong and that the most recent high was reached relatively recently.
Heed the warning signs, dear RUNE holder
While RUNE appeared poised to continue on its uptrend, some indicators hinted at a downward price correction. Firstly, the wide gap between the upper and lower bands of the token’s Bollinger Bands indicator signaled concerning volatility.
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While the gap was because 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 rested at overbought highs at press time. 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 any further price rally and might occasion a decline in RUNE’s value.
On the futures market, traders on leading exchange Binance continued to open positions against the token’s price at press time. Only short positions have been occupied since 15 August.
The situation was no different in the general market, with short positions exceeding long positions. Should sentiment remain sour, downward pressure might be put on RUNE’s price in the coming days.