With the price of THORChain’s RUNE token reaching new heights, prominent crypto trader @Trader1SZ has opened a short position targeting lower levels.
RUNE currently trades around $1.68, up nearly 50% in the last week. The altcoin hit its all-time high above $21 in May 2021 before declining significantly.
Now, as RUNE leads altcoin market in the latest rebound after the major crash we saw 2 days ago, Trader1SZ is betting on a pullback. The influential analyst began building a short position around $1.60.
Trader1SZ is scaling into the trade with a stop loss above $2. His initial target is the $1.12 area. This would represent a 35% drop from current prices.
The trade comes as the crypto market sees renewed volatility. Other altcoins have also climbed to new 2022 highs, raising debate over stretched valuations.
By shorting into strength, the veteran trader is positioning for a potential capitulation in RUNE’s parabolic run. His analysis could signal a correction is ahead after its vertical recovery rally.
Trader1SZ’s call will be monitored closely by the market. His reputation for prescient trades means the short could impact RUNE sentiment. With the token nearing prior all-time highs, his trade may spark similar bears looking to profit from a pullback.
