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RUNE is overbought, but profit-taking could soon lead to…

Press Releases Crypto News AMB-Crypto RUNE is overbought, but profit-taking could soon lead to…

RUNE’s price recorded a 23% uptick over the past week
With bull exhaustion setting in, a price drawback might be imminent soon

RUNE, the native token of ThorChain, closed the last trading week as the second-best performing asset, with gains of over 20%, according to CoinMarketCap.

Is your portfolio green? Check out the Thorchain RUNE Profit Calculator

The price rally followed ThorChain’s integration with MetaMask, which would allow its users to conduct asset swaps in a self-custody environment.

Week ahead looks gloomy

RUNE outperformed the rest of the cryptocurrency market in August, rallying by 66% due to its low positive correlation with Bitcoin [BTC] and the series of protocol updates on the decentralized liquidity network.

With the token’s price at overbought levels at press time, the bulls might experience difficulty championing any further price rally.

On the daily chart, the alt’s price traded above the upper band of its Bollinger Bands indicator. This indicator is used to identify overbought and oversold conditions in a market. When the price of an asset trades above the upper band, it is considered to be overbought. This suggests that the price has moved too far above its moving average and will likely experience a correction soon.

Likewise, the K line (blue) of the altcoin’s Stochastic RSI indicator was pegged at 80.07%, suggesting that RUNE was overbought. This indicator also measures overbought and oversold conditions in the market.

A Stochastic RSI value above 80 typically suggests increased accumulation. It shows that an asset has been overbought and the price will e

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Author: Abiodun Oladokun

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