THORChain risks correction after RUNE price doubles in over a week — what’s next?

YEREVAN (CoinChapter.com) — THORChain (RUNE) prices doubled to nearly $8.50 after bottoming out on Mar. 9, including a 20% upside move witnessed on a 24-hour adjusted timeframe. In doing so, RUNE’s market valuation surpassed that of its top rivals, including Tezos (XTZ) and Helium (HNT) to become the 46th-largest in the crypto sector.

The daily chart hinted at a possible correction ahead, as the trading volumes declined throughout the previous week. Therefore, RUNE bulls would have to put more weight behind the rally if they hope to boost the token even higher.

Also read: THORChain’s RUNE jumps 77% week-to-day as synthetic assets go live.

The ‘overbought’ relative strength index (RSI), a momentum indicator, signified the same. In detail, when the RSI rises above ’70,’ it raises the possibility of an imminent correction.

Additionally, the token arrived at a significant resistance that hindered its upside attempts throughout 2021. Should RUNE conquer the said margin, the token could retest it as support, adding fuel to the rally.

However, the upcoming hours will show if the mentioned resistance remains relevant. As of Mar. 17, THORChain’s month-to-date gains stood just below 110% amid the ubiquitous sideways consolidation.