RUNE Price Could Soar 60% If Surpasses This Interesting Level

7 days agoRUNE Price Could Soar 60% If Surpasses This Interesting Level
RUNE Price witnesses the formation of an interesting Pattern over daily charts the breakout of which could propel the price by 60%.
Weighted sentiment metrics entered the positive territory indicating a buyer's domination.

The recent rebound of THORChain (RUNE) has sparked bullish hopes in the cryptocurrency due to the formation of an interesting pattern over the daily chart. However, a push above the $4.66 level is crucial for a sustained buying momentum.

For those looking for a cryptocurrency with a potential reversal opportunity in September, RUNE could be a good asset to consider as per the analysts. Amid the market recovery in the 2nd week of September, RUNE may outperform several altcoins.

Let's analyze and try to uncover the factors that are supporting RUNE as well as the challenges that could prohibit RUNE from Showing significant gains in September.
Weighted Sentiment Curve Enters The Positive Territory
Amid the price rebound from the lower levels in the recent sessions, the analysts noted a major shift in on-chain metrics. The positive sentiments have surged in the recent sessions, due to which the weighted sentiment curve has shifted from bearish territory to a bullish territory.

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The weighted sentiment curve reveals the combined biasness of the traders and investors whether it is bullish or bearish at the moment.

Moreover, the recent price rise seems to be fueled by the futures traders as the Open Interest contracts have reached a two month high value. An OI data of $38.8 Million suggests investors confidently holding long positions and more traders willing to invest.

<iframe title="Santiment Chart: Total Open Interest in USD (RUNE), Price (RUNE)" width="800" height="425" src="embed.santiment.net/chart?ps=thorchain&pt=RUNE&df=2024-06-10T18:30:01.043Z&dt=2024-09-11T18:29:59.043Z&emcg=1&emhwm=1&wm=total_open_interest;price_usd&wax=0;1&wc=#FF5B5B;#26C953&ws={"node":"area"};" scrolling="no"></iframe>

The transaction volume has surged by 30.69% indicating a heightened demand. Also, the volume to market cap ratio at 10.57% suggests increased volatility in the crypto. It ranks 51st in the cryptoverse with a live market capitalization of $1.36 Billion.

Is RUNE Poised For Significant Gains In September?
Based on the daily chart, RUNE price shrugged off the previous downtrend and bounced from psychological $3 level. This surge in the price suggests that the bulls have defended the support which was crucial for a trend shift.

Currently, the price has surpassed the 20 and 50 day EMA suggesting a potential trend shift ahead. Also, looking precisely, an inverted head and shoulders pattern was observed on the daily timeframe with the price currently forming the last shoulder of the pattern.

The neckline of the formed pattern lies at $4.46 which if breached could pave a 60% rally on the higher side till the $7 level. On the contrary, if the price fails to surpass the neckline and encounters a selling pressure, it may lose the recent profits and fall back towards the $3 level.

At the time of writing, the Relative strength index RSI line was hovering close to 51.6 points and that of the 14 day SMA line was placed at 47.2 points. A bullish crossover between the RSI and SMA line indicates a bullish continuation followed by a breakout on the higher side.