The price of RUNE, the native token of decentralized liquidity protocolThorchain, is on fire on Friday, up 8.5% over the last 24 hours to $5.04. RUNE could make a 44.5% climb to $7.30, levels last tested on Dec. 1 with technical and on-chain tailwinds.
On-chain metrics back RUNE’s uptrend
Multiple on-chain metrics support the bullish outlook. Data from market intelligence firm Santiment the percentage of stablecoin total supply held by whales with more than $5 million is increasing. This this is bullish because it shows investors are getting ready to buy RUNE.
This is corroborated by the soaring Tether (USDT) stablecoin market capitalization, also an indication that traders are leaning towards buying.
Percentage of stablecoin total supply held by whales with more than $5 million, USDT market cap. Source: Santiment
Additional data from Santiment Thorchain’s social dominance and social volume metrics are recording significant spikes. This suggested an increasing number of RUNE mentions on crypto-related social media. These support Thorchain’s the bullish thesis.
RUNE Social dominance and social volume. Source: Santiment
RUNE bulls readying for a 44% climb
ThorChain (RUNE) price could extend the gains after a 10% climb that began when RUNE price pivoted around the $4.26 support level.
The Relative Strength Indicator (RSI) is moving up, a sign of rising momentum. The price strength at 62 suggests the buyers are dominating the market, and a stance below 70 showes there is more room for the upside for RUNR before overbought conditions set in.
As such increased buying pressure from the current level could see ThorChain price shatter resistance due to the 38.2% Fibonacci retracement level, followed by the 50% extension level at $5.50.
Overcoming these barriers would clear the path for the altcoin to make a 44.5% climb to hit $7.30 levels last seen on Dec. 1.
RUNE/USD daily chart. Source: TradingView
On the flipside, profit booking at the current levels could cut the rally short, sending ThorChain price back to the 23.6% Fibonacci level of $4.57. A break and close below this level would invalidate the bullish thesis.
In the dire case, the slump could send ThorChain price to the swing low at $3.75.
