October 31, 2023
The recent breakout of the RUNE price from its long sideways trajectory indicates an early sign of an upcoming bullish trend. This breakout comes after a year-long period of sideways action, suggesting a potential trend reversal. The recovery of the RUNE price is supported by escalating trading volumes and heavy short liquidation.
The THORChain coin has witnessed a significant recovery, with a substantial rally of 94.8% over the past two weeks. This rally is fueled by growing trading volume and strong buyer conviction. The breakout from the resistance trendline of an expanding channel pattern further confirms the end of a long accumulation phase and signals a trend reversal.
With an intraday gain of 5.75% and a surge in trading volume, the RUNE price is expected to continue its upward momentum. It is projected to surge another 8.6% before encountering its next major resistance level at $3.15. If the bullish momentum persists, the price could extend the recovery trend to $3.8 and possibly reach the $5.22 marks.
While the current trend is bullish, it is important to note that meteoric ascents often require minor pullbacks for a sustainable uptrend. Historical analysis of Rune Coin reveals three corrections during its recent four-month rally, each staying above the 50% or 61.8% Fibonacci retracement levels. Therefore, investors may maintain a bullish outlook unless the price dips below the 50% retracement level, currently situated at $1.89.
In conclusion, the recent breakout of the RUNE price from its long sideways trajectory indicates an early sign of a potential bullish trend. The recovery is supported by escalating trading volumes and heavy short liquidation. While a correction may be possible, the overall outlook remains bullish as long as the price stays above the 50% retracement level. Investors should closely monitor the price movement and consider the resistance levels as potential targets for profit-taking.