- Crypto analyst identifies a short setup for RUNE, with entry near $0.416 and downside targets at $0.374 and $0.350.
- A bearish Change of Character (CHoCH) and rejection from a weekly Fair Value Gap suggest a momentum shift toward sellers.
- Sell-side liquidity and previous week lows could act as magnets for price if the bearish structure continues.
The volatile world of cryptocurrency trading, THORChain’s native token, RUNE, is drawing attention for a potential downward move. Prominent crypto analyst Crypto Patel recently shared a detailed short setup on X, pointing to key technical indicators that suggest sell-side liquidity could be targeted soon. RUNE was trading around $0.424 against USDT on Binance, down over 3% in the session, amid broader market fluctuations.
Analyst Highlights Smart Money Concepts Setup
THORChain, a decentralized cross-chain liquidity protocol, has seen RUNE’s price action influenced by network upgrades and DeFi trends. However, Patel’s analysis focuses on Smart Money Concepts (SMC) and Inner Circle Trader (ICT) methodologies, which emphasize liquidity grabs and market structure shifts. The chart shows a sweep of Buy-Side Liquidity (BSL) above the recent range, completing an inducement phase that often precedes reversals. This is coupled with a rejection from a one-week Fair Value Gap (1W FVG), indicating bearish displacement where price fails to hold higher levels.
A key element is the Imbalance Fair Value Gap (IFVG) break and retest, which Patel identifies as a confirmation point for short continuation. The Change of Character (CHoCH) has been confirmed, signaling a shift in momentum from bullish to bearish. Below, Sell-Side Liquidity (SSL) and the Previous Week Low (PWL) act as magnets for price, drawing on untapped liquidity pools. Patel proposes a short entry at $0.416, with a stop-loss at $0.444 to manage risk, and take-profit targets at $0.374 and $0.350—potentially yielding significant returns if the setup plays out.
Key Short Trade Levels for RUNE
This comes at a time when the crypto market is navigating regulatory news and Bitcoin’s halving aftermath, with altcoins like RUNE sensitive to liquidity flows. While THORChain’s ecosystem boasts robust TVL growth from cross-chain swaps, short-term technicals paint a cautious picture. Traders are advised to monitor volume and confirmation candles around the IFVG retest.
Patel’s disclaimer emphasizes doing your own research (DYOR), as market conditions can change rapidly. For RUNE holders, this setup underscores the importance of risk management in a bearish-leaning environment. As Web3 evolves, such analyses highlight how advanced trading strategies can navigate DeFi’s complexities.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
