RUNE trades at a key level but here's why a move to $3 may occur


The Uptrend of THORChain (RUNE) Continues to Gain Momentum

THORChain [RUNE] has been experiencing a strong uptrend in recent weeks, with the price surging by over 81% in the past ten days. This surge has been accompanied by increased trade volume and technical analysis indicating that the next major resistance level is at $3.


The Surge in Price and the Strength of Bulls

The recent surge in the price of RUNE is just one of many moves in the ongoing uptrend that began in early August. Unlike other altcoins, this surge is not directly correlated with bitcoin [BTC].

In August, the $1 zone was successfully retested as support, fueling the long-term bullish sentiment. Prior to this, RUNE was in a downtrend from late April to mid-June, dropping below $1 to reach $0.782.

However, since late June and early August, there has been a significant increase in buying volume, as reflected in the On-Balance Volume (OBV) indicator. The Relative Strength Index (RSI) on the three-day chart also signals strong bullish momentum.

Based on Fibonacci levels, the next resistance levels to watch out for are $2.72 and $3.15. Short positions on RUNE may not be justified unless based on shorter timeframes.


Bullish Factors Supporting the Uptrend

In addition to the price surge, several factors support the bullish trend in THORChain. Open Interest (OI) in the futures market has been increasing alongside the rise in RUNE prices, indicating strong conviction among traders.

Furthermore, the spot Cumulative Volume Delta (CVD) has shown a consistent uptrend, highlighting the demand for RUNE.

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Resistance Levels and Trading Opportunities

Looking ahead, the next significant resistance levels for RUNE are $3.8 and $5. The consolidation seen between January and February 2022 in the $3.7-$4.2 range could present trading opportunities.


Conclusion

THORChain (RUNE) has maintained its strong uptrend, with the price surging by over 81% in the past ten days. The bullish sentiment is supported by factors such as increased trade volume, successful retests of key support levels, and bullish indicators. Traders should keep an eye on resistance levels and potential trading opportunities in the coming weeks.



### News source: ambcrypto.com

By Team