RUNE Price Analysis: Rune Chart Hints 20% Jump Before Next Correction

The THORChain (RUNE) traders can maintain a bullish view until the price sustains above the rising parallel channel pattern. Moreover, a recent reversal from the support trendline should trigger a bull run with its target at the resistance trendline. However, as per the technical setup, this pattern may courage a significant price correction after a breakdown from the bottom trendline.

Key points:

• The RUNE price shows an 8.12% gain in the past two days
• The combined support of EMAs and the $2.5 level indicates multiple hurdles on the downside.
• The 24-hour trading volume in the Thorchain coin is $291.6 Million, indicating a 44.6% loss.

Source-Tradingview

While the crypto market is experiencing premature recovery, the RUNE/USDT pair reflects its bull run within a parallel channel. This run-up was initiated on June 18th, when the price bounced back from the $1.45 low.

In the past six weeks, the RUNE price reflects its record high of $3.04, registering a 108% growth since the bottom low.

Furthermore, the last weekend’s sell-off in the crypto market triggered a minor correction within this pattern. The bearish pullback retested shared support of the rising trendline and the $2.5 mark.

Thus, confluence support provided a suitable footing for buyers which resulted in today’s 5.66% jump. The coin price currently trades at the $2.76 mark, and following the channel pattern, it should rise 22% higher to hit the overhead trendline. 

In optimum conditions, the RUNE price may breach the resistance trendline, accelerating the bullish momentum.

However, in theory, the rising channel pattern encourages a bearish movement once the coin price breaches the support trendline. Thus, the RUNE price is susceptible to a deeper correction if it breaks the pattern’s lower trendline.

Technical indicator

RSI: A bearish divergence in the last two peaks of RSI slope indicates weakness in bullish momentum. If the divergence grows, the traders may get a better confirmation of the upcoming correction.

EMAs: the 20-and-50-day EMAs are nearing a bullish crossover at the $2.5 level, increasing recovery changes to above resistance. 

• This Resistance Levels: $3 and $3.5
• Support Levels: $2.5 and $2.1