Head and Shoulders Chart Pattern Forms On RUNE/USD Daily Chart

THORChain (RUNE) is down by double digits over the last 24 hours as well as in the last 7 days according to the crypto market tracker, CoinMarketCap.

In the last 24 hours, the price of RUNE has fallen to $6.22, which is a 12.07% drop in the last day. Looking at the weekly price movement, RUNE is also down by 23.85% in the last 7 days.

RUNE’s market cap stands at $2,053,857,442, which places THORChain 46th on CoinMarketCap’s list of largest crypto market caps. RUNE is ranked below Klaytn (KLAY) and above EOS with their respective market caps of $2,066,912,119 and $2,022,142,950.

The trading activity for RUNE has increased a bit as its 24-hour trading volume saw a 13.61% increase, which is around $194,829,650.

When looking at the daily chart for RUNE/USD, the classic and often reliable head and shoulder chart pattern has begun to form, signaling and bearish trend reversal. This should be followed by the price moving further downwards.

The price may be headed to a support level of around $6.00, which is a level that served as resistance earlier this year at the beginning of March. Should the price dip below the $6.00 mark, we could see the price drop further to below $5.00. If not, then we may see the price attempt to test the $9.00 resistance level once more.

One thing to be aware of is the bearish death cross that has formed towards the end of April as the 15 EMA crossed below the 50 EMA. This could suggest that the downwards price movement will continue in an attempt to break the $6.00 support level.

Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CoinQuora. No information in this article should be interpreted as investment advice. CoinQuora encourages all users to do their own research before investing in cryptocurrencies.