THORChain Price Analysis: RUNE Price Threatens Six Month Low Support; Is $2 Next?

Brian Bollinger
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CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

The panic selling in the crypto market has resulted in an extended correction in RUNE price. The coin lost its crucial support of $5.7, which majorly supported during December 2021 and early January. The RUNE price has devalued by 40% within a week and now challenges another key support of $3.35.

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Key technical points: 

  • The daily-RSI slopes plummeted to the oversold region
  • The intraday trading volume in the RUNE token is $66 Million, indicating a 1.85% hike.

Source- Tradingview

During the first half of January, the RUNE price continued to resonate in a narrow range extending from $8.1 to $5.7. Such consolidation phase represents a short break for price action before they continue their primary trend.

On January 19th, the token price gave a strong fallout from the $5.7 support, providing a selling opportunity for crypto traders. In just five days, the RUNE price lost 40% in value and plunged to the crucial support of $3.4.

The technical chart represents a bearish alignment among the crucial SMAs(20, 50, 100, and 200). These SMA lines could provide strong resistance during a possible bull run.

The daily-Relative Strength index(24) represents a sudden dip to the oversold territory, indicating the sellers might have pushed the token beyond its fair value.

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RUNE Sellers Trying To Engulf $3.35 Support 

Source-Tradingview

The RUNE/USD pair is currently trading at the $3.2 mark, indicating an intraday loss of 16.31%. The token price has dropped below six-month prior support of $3.35, suggesting the price will continue its downfall.

However, the crypto traders are advised to wait for candle closing below this support to confirm a fallout and a possible sell opportunity to the $2 mark.

The Moving average convergence divergence shows the MACD and signal lines provide a bearish crossover below the neutral zone(0.00), indicating a sell signal.

  • Resistance level $4.7, $5.7. 
  • Support levels-$3.5, $2.1. 

 

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
From the past 5 years I am 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. Reach out to me at brian (at) coingape.com
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.