RUNE token pumped 90% in 7 days; where is it headed now?

Lavina Daryanani
Source: The Market Periodical

THORChain’s RUNE has been rallying consistently for over a week now, without paying heed to the broader market’s monotonous state. Last week around this time, the 47th largest altcoin was trading around the $4 threshold. But now, this coin has already navigated its way up to $7.6. In effect, RUNE’s weekly pump stood at 91% at the time of press.

Owing to the late upswing, the altcoin’s Sharpe Ratio has witnessed a steep incline. As such, the Sharpe ratio measures the performance of an investment compared to a risk-free asset, after adjusting for its risk. So, the higher the ratio, the better the risk-adjusted-performance.

Throughout February, this metric remained in the negative terrains. Nonetheless, at the time of press, the same was seen hovering above +4, around its YTD highs – a healthy sign.

Source: Messari

Also, it is worth noting that the rally this time has been accompanied by a substantial hike in the altcoin’s trading volumes. From wafting around $20-$30 billion, the number inflated by 10 times and attained the $200 billion peak yesterday.

The curve’s tail, at the time of press, was seen pointing down-south, but as the day progresses, the same can be expected to rise back up.

Source: Messari

Key levels

Evidently, momentum is on RUNE’s side and there is plenty of room on the upside for it to navigate. A bird’s eye view on the chart below would bring to light that the altcoin is attempting a parabolic recovery. As far as the short term is concerned, one can expect RUNE to glide up by another 8%-18% to $8.5 to $10.

Nonetheless, the coin is currently exchanging hands in its demand zone [which extends from around $6.4 to $9.2] which fostered the coin’s rally earlier in November last year. So, RUNE might as well consolidate for a while and move horizontally before heading higher.

Source: TradingView