Connect with us
Active Currencies 14899
Market Cap $2,499,446,635,918.80
Bitcoin Share 51.15%
24h Market Cap Change $1.67

THORChain: Assessing the chances of RUNE reaching the $10 mark

2min Read
Thorchain: RUNE to rally toward $16?

Share this article

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.

A pattern with Bitcoin’s price action and the FOMC meetings suggested that Bitcoin could see a bounce toward $45k over the next month. RUNE saw a strong bounce and a shift in market structure toward the bullish side. A bearish divergence could see a minor drop toward $6.5 for the token, after which a run toward $9 and $10 could resume.

RUNE- 1 Day Chart

Thorchain: RUNE to rally toward $16?

Source: RUNE/USDT on TradingView

When RUNE dropped below $10 in early April, the market structure flipped to bearish as the recent higher low at $10 was broken. On the way down, the price set the most recent lower high at $7.18 in late April, and in the past couple of days, RUNE was able to breakout past this level.

Moreover, based on the Fibonacci retracement levels (yellow), it appeared that the $6 level had held reasonably well in the face of a bearish onslaught. The entire region from $5.2 to $6.9 can be used to dollar-cost average into a long position on the Thorchain native token.

Rationale

Thorchain: RUNE to rally toward $16?

Source: RUNE/USDT on TradingView

The indicators showed that another leg down could be seen. The RSI showed a hidden bearish divergence (pink) between the price and momentum. This meant the previous bearish trend could continue.

Yet, the price has broken past the most recent lower high of the downtrend at $7.18. Hence, it was more likely that a drop toward $6.5-$7 could occur rather than the resumption of the previous downtrend.

The Awesome Oscillator continued to remain below the zero line, similar to how the RSI was unable to rise past neutral 50. The Stochastic RSI was also headed toward the oversold territory. On the OBV, a level of support last month has acted as resistance, and it would need to climb past the resistance once again to show bulls to be in the driving seat.

Conclusion

Even though the market structure appeared to have shifted in favor of the bulls, the momentum indicators showed that a drop toward $6.5 could be seen. Such a dip could be a good buying opportunity, with take-profit targets at $8.5 and $9.7-$10.

Share

Akashnath Sumukar works as a Senior Journalist at AMBCrypto. Based in Chennai, India, he has been an avid follower of the cryptocurrency market since Bitcoin’s boom and bust cycle of 2017. A graduate in Chemical Engineering, he is an expert in technical analysis. In fact, Akashnath has a particular interest in reading price charts and predicting how an asset will move over the short and long term. A self-taught trader and as someone who holds cryptos himself, he is always on the lookout for the next opportunity he can possibly capitalize on, while also educating his audience.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.