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The recent rebound of THORChain (RUNE) has sparked bullish hopes due to the formation of an interesting pattern over the daily chart. The RUNE Price just requires a push above the $4.66 level, and then there might be a sustained buying momentum.
Analysts believe RUNE could be a good digital asset for those looking for a cryptocurrency with a reversal potential in September. It may outperform several altcoins amid the market recovery in the 2nd week of September.
Let’s analyze and uncover factors that support THORChain price and the challenges it might face in September.
Weighted Sentiment Curve Enters Positive Territory
Amid the price rebound from the lower levels in the recent sessions, analysts noted a major shift in on-chain metrics. Positive sentiments have surged in recent sessions. Consequently, the weighted sentiment curve has shifted from bearish to bullish territory.
The futures traders could have fueled the recent RUNE price rise because Open Interest (OI) contracts have reached a two-month high value. An OI data of $38.8 million suggested that investors confidently held long positions and more traders were willing to invest.
The transaction volume of RUNE crypto also surged by 30.69% at press time, indicating an increased demand. The Volume/Market Cap ratio at 10.57% suggested increased volatility in the crypto. It ranked 51st in the cryptoverse with a live market capitalization of $1.36 Billion.
Is the RUNE Price Poised for Significant Gains in September?
Based on the daily chart, the RUNE price shrugged off the previous downtrend and bounced from the psychological $3 level. This price surge indicated that the bulls defended the support, which was essential for a trend shift.
When writing, the price has surpassed the 20-day and 50-day EMAs, hinting toward a potential trend shift ahead. The Relative strength index RSI line was hovering close to 51.6 points at the time of writing. The 14 day SMA line was placed at 47.2 points.
An inverted head and shoulders pattern also appeared in the daily timeframe. The price was forming the last shoulder of the pattern at press time.
The neckline of that pattern lies at the $4.46 level, which, if breached, could pave a 60% rally on the higher side till the $7 level. On the contrary, if the RUNE price fails to surpass the neckline and encounters selling pressure, it may lose the recent profits and fall back towards the $3 level.