Trusted

THORChain (RUNE) Price Leaps 50%: Could Bears Hamper The Bullish Momentum?

2 mins
Updated by Ryan Boltman
Join our Trading Community on Telegram

In Brief

  • RUNE price is at a crucial junction set to test the bullish support level of 61.8% Fibonacci Retracement.
  • The recent rally liquidated nearly $1 million worth of short contracts, the largest since November 2023.
  • The MVRV ratio is in the danger zone, signaling potential selling, which could trigger a price correction.
  • promo

The THORChain (RUNE) price is posting a green candlestick for the second day today, collectively rising by nearly 50% in the last 48 hours. This has caused the bears considerable dejection.

But could this potential development change the tides and put the short traders in the driving seat?

RUNE Price Rise Hurts Bears

Following the 50% rally in the last two days, RUNE price has managed to breach a crucial barrier and is on the cusp of flipping another key Fibonacci Retracement level into support. However, in doing so, RUNE caused considerable losses for the short traders.

Nearly $1 million worth of shorts contracts have been liquidated until writing. This is the highest shorts liquidation since November 2023, marking a four-month high. The optimism thus imbued will likely result in higher Call contracts taking precedence.

RUNE Liquidation
RUNE Liquidation. Source: Coinglass

The Open Interest volume is peaking at $121 million, the third highest over 24 months. This suggests that investors are still holding out significant Futures contracts at the time of writing. Combining this with the positive funding rate highlights that most of these contracts are likely favoring a bullish outcome.

RUNE Futures Open Interest | Source: TradingView
RUNE Futures Open Interest. Source: Coinglass

RUNE Price Prediction: Where Could Price Head Next?

Looking at the 3-day chart, RUNE price seems to have already breached the 50% Fibonacci Retracement of $11.4 to $1.7. This level is $6.5, and the candlestick is close to breaching the $7.7 barrier. The latter coincides with the 61.8% Fibonacci Retracement, also considered a bull rally support floor.

Flipping this line into support sustains the rally, boosting the bullish momentum. Considering the investors’ intentions, this is a possible outcome that could push RUNE’s price to tag $10.

RUNE/USD 3-day chart
RUNE/USD 3-Day Chart. Source: TradingView

However, the MVRV Z-Score suggests that selling could be on those cards. This indicator measures the ratio between a cryptocurrency’s market value and realized value, indicating whether it’s over or undervalued. A positive score suggests overvaluation, while a negative score indicates undervaluation.

RUNE’s MVRV Z-score is well above the 2.71 threshold, suggesting the altcoin is overvalued and could induce profit-taking. Consequently, the RUNE price would note corrections, likely falling to $6.5. Losing this level would invalidate the bullish thesis, sending the cryptocurrency to $4.0.

Top crypto projects in the US | October 2024
Exodus Exodus Explore
Coinrule Coinrule Explore
Uphold Uphold Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | October 2024
Exodus Exodus Explore
Coinrule Coinrule Explore
Uphold Uphold Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | October 2024

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Frame-2t314.png
Aaryamann Shrivastava
Aaryamann Shrivastava is a technical and on-chain analyst at BeInCrypto, where he specializes in market reports on cryptocurrencies from diverse sectors, including Telegram Apps, liquid staking, Layer 1s, meme coins, artificial intelligence (AI), metaverse, internet of things (IoT), Ethereum ecosystem, and Bitcoin. Previously, he conducted market analysis and technical assessments of various altcoins at FXStreet and AMBCrypto, covering all aspects of the crypto industry, including...
READ FULL BIO
Sponsored
Sponsored