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- ThorChain price is planning to extend the gains after a full swing V-shaped recovery.
- $RUNE could make a 15% climb to $5.50, levels last tested on January 4 with technical and on-chain tailwinds.
- Bitcoin and altcoin revival courses could drive the altcoin to recoup some of the ground lost in 2024.
- The bullish thesis will be invalidated upon a break and close below the 50% Fibonacci level of $4.34.
ThorChain ($RUNE) price is trading with a bullish bias, completing a full swing v-shaped recovery after the steep dip in the first four days of February. It comes amid an altcoin revival recourse, inspired by Bitcoin (BTC) price breaking past the $45,000 psychological level.
ThorChain likely to climb 15% soon
ThorChain ($RUNE) price could extend the gains after a 10% climb that began when $RUNE price pivoted around the 50% Fibonacci level of $4.34.
Multiple technical indicators and on-chain metrics support the bullish outlook. The Relative Strength Indicator (RSI) is moving up, a sign of rising momentum. Its position above 50 suggests a strong price strength, and a stance below 70 showing there is more room to the north before $RUNE is considered overbought.
Also, the Moving Average Convergence Divergence (MACD) indicator is moving above its signal line (orange band) edging toward positive territory. This hints at a possible bullish cycle incoming. The histogram bars of the MACD are flashing green, indicating a strong presence of bulls in the $RUNE market.
Increased buying pressure could see ThorChain price shatter resistance due to the 50-day Simple Moving Average (SMA) at $4.77 followed by the 100-day SMA at $5.08.
Overcoming these blockades would clear the path for $RUNE to make a 15% climb to hit $5.50, levels last seen on January 4. In a highly bullish case, the gain scold see the altcoin hit the $6.00 psychological level.
$RUNE/$USDT 1-day chart
On-chain metrics supporting ThorChain bullish outlook
Several metrics from Santiment support the bullish thesis. For starters, the percentage of stablecoin total supply held by whales with more than $5 million is increasing. This points to growing intention to buy $RUNE. The sentiment is corroborated by the soaring Tether ($USDT) stablecoin market capitalization, also suggesting traders are leaning towards buying.
$RUNE Santiment: Percentage of stablecoin total supply held by whales with more than $5 million, $USDT market cap
Also,the social dominance and social volume metrics are recording significant upticks, suggesting an increasing number of $RUNE mentions on crypto-related social media. These accentuate the bullish thesis.
$RUNE Santiment: Social dominance, social volume
On the flipside, early profit booking could cut the rally short, sending ThorChain price back to the 50% Fibonacci level of $4.38. A break and close below this level would invalidate the bullish thesis.
In the dire case, the slump could send ThorChain price to the 200-day SMA at $3.35.