- RUNE’s social dominance has increased sharply, reflecting its popularity.
- The token’s trading volume has decreased alongside its price over the past 24 hours.
Thor’s Chain (Rune) The token has shown remarkable performance in the past week with a double-digit price increase. But the scenario has changed in the last 24 hours as the token’s chart has turned red.
Is this a short-term price correction or will bears push the token price even lower?
Bullish week for THORChain
CoinMarketCap data revealed that RUNE investors had a profitable week, as the token’s value increased by more than 25% during the period.
However, bears took control in the last 24 hours and pushed THORChain’s value down by more than 2.5%.
At the time of writing, RUNE was trading at $3.91 with a market cap of over $1.3 billion, making it the 52nd largest crypto.
Thanks to the weekly price hike, RUNE’s social dominance skyrocketed, reflecting an increase in its popularity. However, after a major surge on August 16, RUNE’s weighted sentiment plummeted.
This suggested that bullish sentiment around the token was waning.
Source: Santiment
The recent price drop could be short-lived, however, as the token was gearing up for a massive breakout. In fact, AMBCrypto reported Earlier, RUNE could soon reach $5.
World Of Charts, a popular crypto analyst, recently published a tweet revealing a falling wedge pattern on the THORChain chart.
The pattern appeared in November 2023, and since then, the price of RUNE has been consolidating within it. At the time of writing, the token’s price was about to break through this level.
According to the tweet, if there is a breakout, investors could see a 200% surge in the coming weeks or months. The surge could see the token reach $10.
Source: X
What the measures suggest
The good news is that even though THORChain’s price has dropped in the last 24 hours, its trading volume has also dropped by 32%. Such incidents often foreshadow a trend reversal.
Our analysis of Coinglass data revealed that RUNE’s open interest has also decreased. Generally, a decrease in open interest also suggests that the chances of a change in the current price trend are high.
Source: Coinglass
Read THORChain (RUNE) Price Prediction 2024-25
The MACD also posted a bullish crossover. Similarly, the Chaikin Money Flow (CMF) registered an increase, suggesting that RUNE was on track to reclaim $5 in the coming days.
However, the Relative Strength Index (RSI) has registered a slight decline and is heading towards the neutral mark. This indicates that the current price decline may continue, which could push RUNE down to $2.9.
Source: TradingView
