THORChain (RUNE), a decentralized cross-chain liquidity protocol that enables people to swap tokens between chains, has gained market attention due to its bullish setup, as mentioned by crypto analyst Ali Martinez. As per the data reported today by the analyst, RUNE could consolidate further before experiencing a bullish breakout to $2.
Current market charts from TradingView show that RUNE is already in a period of modest consolidation following its recent downtrend that saw its price fall from a high of $1.7523 on July 21st to a low of $1.1295 on August 2. Since then, the altcoin has been witnessing a corrective period that the analyst considers an essential move to still absorb recent gains and stabilize market momentum.
RUNE’s Falling Wedge
According to the data presented by the analyst, RUNE is currently in the formation of a falling wedge pattern, a technical setup that normally happens before impressive price moves. Historically, a falling wedge is a bullish signal, showing that a price drop is losing strength and indicating a price surge when the breakout happens above the upper trend line.
With RUNE currently forming a falling wedge, Ali sees a likelihood of a breakout soon. According to the analyst, a massive market surge will happen after the breakout occurs. Previous breakouts from similar formations have resulted in substantial price rises – bolstered by increases in demand and purchasing frenzy, leading to a swift price surge.
While crypto users are keenly observing RUNE’s price action as it consolidates, Ali disclosed that this period could last multiple days. The correction phase functions to strengthen support regions and develop a foundation for rejuvenated upturn pressure. This kind of price behaviour typically occurs in bull markets where short-term corrections pave the way for a massive upswing.
RUNE Could Break Through $2
RUNE is currently standing at $1.36 with a 24-hour 3.5% price decline, indicating a slump in the market. Its price has also been down 4.4% over the past week, showing a corrective phase. According to the technical price forecast by Ali, RUNE is currently down, with indicators showing buyers are preparing to enter the market, leading to a possible breakout.
The analyst believes that buying pressure and price momentum will build up. A successful breakout could send RUNE surging by 47%, possibly climbing to a high of $2 in the forthcoming weeks, as illustrated by the analyst.
On top of the technical formation, RUNE’s bullish indicators are also catalysed by THORNChain’s recent upgrades designed to create multiple improvements, including enhanced cross-chain composability and improved transaction effectiveness. Late last month, Binance halted withdrawals and deposits of the RUNE token on July 31 to support a crucial network update initiated by THORChain.
