Key Takeaways:
- RUNE price continued its rally on Sept. 16.
- Metamask added support for THORChain, helping fuel the token’s rally.
- The RUNE derivatives market remained volatile.
NEW DELHI (CoinChapter.com) — THORChain native token RUNE prices continued their rally on Sept. 16 as crypto wallet Metamask added support for the blockchain.
The announcement stated that Metamask added support for the blockchain through a ShapeShift ‘snap‘ add-on.
ShapeShift is a decentralized crypto exchange application that recently announced a ‘multichain snap‘ feature that helps users store and trade non-EVM assets like Bitcoin (BTC) without the need for bridges.
The move would enhance THORChain’s ability to interact with multiple chains.
Meanwhile, as news of the partnership spread, RUNE perpetual contracts started liquidating, with short positions getting decimated as traders closed shorts worth $440,410 on Sept. 16, slightly lesser than Sept. 15’s short liquidations of $631,000, per Coinglass data.
In contrast, traders liquidated long positions worth $17,810 on Sept. 16.
However, the funding rate for the THORChain token remained negative, suggesting that traders anticipate a downtrend in the cards for RUNE.
RUNE Price Faces Risks From Overbought RSI
Meanwhile, RUNE’s relative strength index has become overbought, with a score of 72.07 on the daily timeframe. Overbought RSI levels often precede an asset’s bullish reversal or consolidation phase. Hence, traders often start selling as the RSI score moves above 70, the overbought threshold.
However, RUNE seems to have ignored the overbought RSI level for the moment, with the token spiking 8.5% to a daily high near $1.96. The jump took the THORChain token price’s WTD gains to over 35% since Sept. 11’s low of $1.45.
If bulls continue increasing the buying pressure, RUNE price might rise to the resistance near $1.99, which the token has failed to close above since Sept. 2022. Breaking and consolidating above the immediate resistance might help the THORChain token price target the resistance near $2.31 before retreating.
On the other hand, if the overbought RSI increases selling pressure, RUNE price might drop to the support near $1.69, which acted as resistance for the THORChain token since Aug 22 this year.
Failure of the immediate support level might force RUNE price to test its 50-day EMA (purple wave) support near $1.44.
