THORChain (RUNE) has gone below both the long-term and short-term support levels. It is not yet showing any signs of a bullish reversal.
The trend line of the tops is getting lower
RUNE has been falling below a descending trend line since reaching an all-time high (ATH) of $21.28 on May 19, 2021. The line has been validated three times, most recently on March 31st.
Since July 2021, the price has been trading above the $3.5 horizontal zone, which has helped the price initiate several bounces. However, this zone appears to have been broken on May 16, even if the price has yet to reach a weekly close below it.
This is the long-term support, and it has existed for more than 300 days. If the upward momentum is gone, the price is very likely to break through this white horizontal line.
If the downtrend continues, the nearest support will be $0.7-$0.8.
Price is trading below the support line
The daily chart is not showing any signs of a potential bullish reversal. The price of RUNE is currently at $3.07, well below the $3.5 support level, although it was tested on May 12 when the price dropped to $2.4 and rallied to $3.8 in just 3 days.
The current price on the daily chart shows that it has broken support and short-term resistance at $3.8, so this is the level that needs to break the downtrend to move up.
However, the RSI is continuously making lower highs and lower lows, and there is no sign of divergence, so it is difficult for RUNE to reach a higher price.
On the 1-hour chart, the price is also moving sideways but at a lower level.
Data from indicators
In the end, the selling data from the indicators are not very positive as the buying power is weakening, and the bears have the upper hand.
Will the crypto market in the coming days be less gloomy, and the THORChain price can go up from here?
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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