THORChain (RUNE) Attempts Breakout After Doubling in Price Since June Lows

THORChain (RUNE) has been trading inside a corrective pattern since June 18 but is currently making an attempt at breaking out from it.

RUNE has been falling since reaching an all-time high price of $21.30 in May 2021. Since then, it has created three lower highs (red icons). 

Initially, the price managed to hold on above the $3.70 horizontal support area. The area had been providing support since Feb. 2021, initiating several bounces (green icons). However, the price broke down in May 2022 and proceeded to reach a low of $1.43 in June. 

While RUNE has been moving upwards since, it has yet to reclaim the $3.70 horizontal area, which is now expected to provide resistance. Until it does, the trend cannot be considered bullish.

RUNE breaks out

The daily chart provides a more bullish outlook relative to the weekly one, mostly because of the RSI reading. 

The RSI has been generating bullish divergence in the period between May 11 and June 18. It has been increasing since and is now above 50. 

Additionally, the price has broken out from a descending resistance line. While it is currently struggling with the $3 resistance area, a movement above it could trigger the acceleration of the upward movement towards $5.90, which is the 0.382 Fib retracement resistance level.

Wave count analysis

Technical analyst @Altstreetbet tweeted a chart of RUNE, stating that the price has begun a new upward movement and a bullish impulse towards at least $3.50.

Since the June 18 bottom, RUNE has been trading inside an ascending parallel channel and is currently at its resistance line. Such channels usually contain the corrective pattern, meaning that a breakdown from it would be the most likely scenario. 

Despite this, the wave count suggests that the price is in wave three (black) of a five-wave upward movement, and will soon break out from the channel. This is also in alignment with the readings from the daily time frame.

If the price manages to break out from the channel, it would confirm that it has initiated a bullish trend reversal, since it would also break out from the $3 horizontal resistance area.

As it stands, waves one and three have had an exactly 1:1 ratio. So, if the price gets rejected from the resistance line instead (red icon), it would mean that the entire upward movement was corrective instead. In this case, new lows would follow.

For Be[in]Crypto’s latest bitcoin (BTC) analysis, click here

The post THORChain (RUNE) Attempts Breakout After Doubling in Price Since June Lows appeared first on BeInCrypto.

Earning Passive Income With Crypto

Related Posts

SHIB Metaverse: How Will it Impact the Price of Shiba Inu?

SHIB Metaverse: Shiba Inu is one of the best-known cryptocurrencies on the market, and was launched in August 2020. A little over 5 months ago, it announced…

PoW Miners Rake in Profits Mining ETH Until the End, Ethash Networks Expect a Boost, JPMorgan Strategists Say ETC Could Benefit

In just over a month’s time, The Merge is likely to be implemented on the Ethereum blockchain and the network’s proof-of-work (PoW) miners will be forced to…

Another Stablecoin Depegs From USD Parity, Polkadot-Based AUSD Loses 98% in Value

2022 has been the year of broken stablecoins as a myriad of dollar-pegged crypto assets depegged from their dollar value this year. On August 14, the Polkadot-based…

Weekly NFT Sales Show Improvement, Fantom and Immutable X NFT Volume Spikes

Non-fungible token (NFT) sales managed to climb higher during the last seven days than the previous week’s overall sales. This week’s NFT sales managed to jump over…

Aave Responds to Blocking Addresses Over Tornado Cash Clampdown

DeFi lending protocol Aave Protocol said the TRM API on its app was responsible for blocking addresses that received ETH from unknown sources through Tornado Cash. In…

Brazilian Crypto Investment Platform Bluebenx Stops Withdrawals Under Hack Allegations

Bluebenx, a Brazil-based cryptocurrency investment platform, suspended withdrawals last week due to an alleged hack that made the company lose more than $31 million. The company announced…