Analysts Bullish on THORChain (RUNE) Price: 4x Gains Ahead?

In less than ten days, the THORChain (RUNE) managed to harness more than 40% gains on the chart. In intraday, it showed splendid 14% gains, where it last traded at $3.70 (at press time). The optimism in RUNE was led by the broader market bullish sentiment, as BTC jumped above the $60000 mark.

The increased bullish sentiment led its market cap to increase by 14%, reaching $1.23 Billion. This surge placed RUNE at the 55th rank based on it’s 24-hour price activity. 

Meanwhile, intraday, the spot volume inflow surged 30%, signifying rising interest. The liquidity ratio of 24 hours was also good at 16.60%, which signified more liquidity present in the asset, making trading easier.

Analyst On X Predicts 4X Gains

The RUNE price had been at an important level and has bullish sentiment. There are numerous posts on X this week of many traders, investors, and researchers sharing their optimism for the asset.

@cryptojack on X shared optimism with followers with a chart drawing. The analyst highlighted the possibility of 4x gains.

@cryptojack further stated that RUNE seemed poised for a massive breakout, given the bullish pattern.

Despite Losing Major Gains, Why Are Many Expecting a Rally?

RUNE is the native token of THORChain, the cross-chain decentralized exchange. On the daily chart, the token is down nearly 65% from March highs and has formed support at major demand zones. This month, the price had showcased a bullish presence in correlation to the broader crypto market recovery.

Despite the massive sell-offs, many are confident that RUNE price might start rallying in the coming sessions. The primary reason for the confidence lies in the fundamental factors and efforts that were made by the development team in the second quarter.

RUNEpool, a major update to the platform, was launched on July 31st, 2024. The update created a new way to provide RUNE as liquidity in several pools.

Additionally, the partnership between @THORChain and @TeamKujira was officially announced on August 9th to make Kujira’s DeFi suite on THORChain’s platform. This has generated a wave of excitement across both communities.

Breakdown of RUNE Daily Chart

RUNE had manifested gains of more than 1200% by the first quarter of 2024 from the last quarter of 2023. The token managed to rise from the critical support of $0.833 to $11.474.

But, thereon, RUNE lost fuel. The price plummeted nearly 70% by August 5th, 2024. Overall, this price activity led to the formation of a declining wedge, contracting the price range.

Moreover, the price has followed the wedge by discipline, and recently, this week, it rose from the lower border and headed for the upper border.

The 50-day and 200-day EMAs are looming above as a hurdle, but the price could pierce them soon. If RUNE surpasses these EMAs and breaks past the horizontal resistance level of $5, this could show a Change of Character (CHoCH) for bullish confirmation.

The RSI rebounded from oversold territory, where it was at 48.72. MACD showed a bullish cross, where the histogram was at 0.022.

Therefore, based on its recent price performance, if the price breaks past the upper border, then the aimed targets could be at $6.0 and $9.0, respectively. However, the support could shift to $2.