THORChain Price Analysis: Reversal Pattern Aim RUNE Price to Hit $3.4

Source : coingape.com

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Published 20 mins ago

The crypto market started the week on a bullish note, regaining the lost market value from the recent pullback. Thus, the THORChain(Rune) price rebounded from the $1.75 mark with a morning star candle, nearing the $2.24 neckline resistance of a cup and handle pattern. Can this pattern bring a genuine recovery in Rune price?

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Key points:

  • The RUNE price is nearing the completion of the cup and handle pattern.
  • The RUNE buyers reattempts to claim the 20-day EMA slope.
  • The 24-hour trading volume in the Thorchain coin is $240.4 Million, indicating an 85.4% rise. 

RUNE/USDT Chart

Source-Tradingview

The RUNE/USDT recovery rally took a sharp turn from the $2.4 resistance with a bearish engulfing candle. Furthermore, the six consecutive red candles backed by high volume activity indicate the sellers still maintain a firm grip over this coin.

The downfall plunged the RUNE price by 27.5%, reaching the $1.756 mark. However, the altcoin rebounded from this support and appreciated 21.5% as it currently trades at $2.14. The rising price bolsters the growing volume of activity, validating a genuine rally.

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If sustained buying reached the $2.42 resistance, the RUNE chart would reveal the formation of a cup and handle pattern. With a bullish breakout from its neckline resistance($2.42), this bullish reversal pattern should accelerate the buying pressure for further rally.

The post-breakout rally from $2.42 could raise the RUNE price by 40%, targeting the $3.4 mark, followed by $3.8.

Technical indicator

On June 27th, the coin price showed a failed attempt to sustain above the dynamic resistance of the 20-day EMA, indicating aggressive selling in the market. However, today, the buyers reattempt to reclaim this EMA to support the pattern formation.

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A bullish reversal from $1.75 has already surged the daily-RSI slope to the neutral line(50%), suggesting the improvising sentiment among market participants. A crossover above the midline would get an additional confirmation for a recovery rally.

  • Resistance levels- $2.4, and $3.1
  • Support levels- $1.75 and $1.47

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From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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