THORChain [RUNE] recently underwent a significant upgrade, introducing new changes to its blockchain. However, the upgrade failed to generate positive market sentiment, leading to a notable decline in the token’s value. Let’s delve deeper into the current state of affairs with regards to RUNE.
Exploring THORChain’s Latest Upgrade
On September 4th, THORChain developers implemented the latest upgrade, which included various improvements to the blockchain. These enhancements involved eliminating outdated legacy code, updating the Cosmos SDK version, optimizing node states for quicker synchronization, and incorporating support for Bitcoin Taproot addresses.
Despite the significant upgrades brought about by the hard fork, it did not attract bullish activity in the market. This lack of enthusiasm was reflected in the token’s substantial 70% decline over the past half-year. Particularly in the last week, the price of RUNE experienced a sharp double-digit drop.
Within a span of just seven days, CoinMarketCap reported an 11% decrease in RUNE’s value, with the token currently trading at $3.54 and boasting a market capitalization exceeding $1.18 billion.
One interesting observation was the surge in trading volume accompanied by the price decrease. Typically, a surge in trading volume during a price decline sets the stage for a potential bear rally. Additionally, despite the fall in price, the weighted sentiment for RUNE saw an upward trend, indicating a semblance of bullish sentiment among investors.
The social volume of the token also saw a significant increase, underscoring its popularity within the crypto community.
Further examining Coinglass data assessed by CryptoCrypto, another bullish indicator emerged. The long/short ratio for RUNE rose, showing a higher prevalence of long positions compared to short ones in the market.
Predictions for the Future of RUNE
Turning to the token’s daily chart, CryptoCrypto analyzed whether a bullish trend could emerge in the days ahead. Notably, RUNE’s price has been consolidating within a parallel channel, and positive signals were detected.
Noteworthy was the token touching the lower boundary of the Bollinger Bands, often preceding price increases. Additionally, the Relative Strength Index (RSI) displayed an upward trajectory, suggesting a potential bullish trend reversal in the near future.
Further insights from Hyblock Capital’s data, as analyzed by CryptoCrypto, shed light on the altcoin’s upcoming targets.
Based on the technical indications, should the bulls regain control, investors could witness RUNE reclaiming $4.22 shortly. Conversely, in the event of a sustained price decline, the token might descend to $2.9.