THORChain (RUNE) Begins a Bull Rally, But Will the Trend Last?

THORChain [RUNE] has showcased commendable performance over the last 24 hours as its value surged in double digits. While that happened, the token also witnessed a major surge in its trading volume.

THORChain (RUNE) has displayed an impressive performance over the last 24 hours, with its value surging in double digits. This occurred alongside a major increase in the token’s trading volume.

Let’s take a closer look at what enabled the token to begin this bull rally and whether this trend will continue.

THORChain begins a rally

CoinMarketCap’s data showed that RUNE’s price had increased by over 16% last week. Things got even better in the past 24 hours, as the token’s value surged by more than 13%.

At the time of writing, THORChain was trading at $3.70 with a market capitalization of over $1.2 billion, making it the 55th largest cryptocurrency.

This price increase also pushed the token’s Weighted Sentiment into the positive zone, indicating that bullish sentiment around it was dominant in the market.

Moreover, its Social Volume remained high, reflecting an increase in RUNE’s popularity in the crypto space.

Upon further inspection, AMBCrypto observed that the token’s trading volume also surged along with its price. Typically, a rise in volume during a price increase acts as a strong foundation for the bull rally.

Its Open Interest went up, suggesting that the chances of the bull rally continuing further were high. However, RUNE’s Funding Rate also went up.

Usually, prices tend to move the opposite way than Funding Rates, which is a bearish concept.

Will the bull rally last?

AMBCrypto’s look at Hyblock Capital’s data showed that at press time, THORChain’s whale vs. retail delta had a value of 96.

This indicator ranged from -100 to 100, with 0 representing whales and retail positioned exactly the same.

Since the value was much closer to 100, it meant that whales were having a higher long exposure than retail investors.

Apart from that, Coinglass’ data showed that RUNE’s Long/Short Ratio registered a sharp increase.

This suggested that there were more long positions in the market than shorts, indicating that bullish sentiment was dominant in the market.

We then decided to check THORChain’s daily chart to better gauge whether this uptrend will continue. The technical indicator MACD displayed a bullish crossover.

RUNE’s Bollinger Bands revealed that the token’s price was testing its resistance around the 20-day Simple Moving Average (SMA). A successful breakout above that would allow the token to attempt to reach $4.9-$5.

However, both its Relative Strength Index (RSI) and Chaikin Money Flow (CMF) registered slight downticks, indicating that the bull rally might be coming to an end soon.

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