RUNE Technical Analysis: Crucial Support at $3.5 Under Bearish Attack
The THORChain protocol is an open-source liquidity platform that allows users to trade crypto assets over a variety of networks without losing control over their assets in the process.
With THORChain users are able to switch one asset to another in a non-permissionless manner and not rely on order books to obtain liquidity. Instead, prices of the market are maintained by how many assets are within the pool.
Let us move ahead to read about THORChain technical analysis.
Past Performance of RUNE
The RUNE coin price tanked more than 45% in the past two weeks, resulting in multiple bearish candles in the daily chart. The selling pressure is evident by the lack of a single bullish candle in the downfall. The price rests close to the $3.5 mark, the crucial support level has pushed the price higher multiple times in 2021.
RUNE Technical Analysis
The RUNE coin price shows lower price rejection near the $3.5 support level, visible by the long tail formations. However, the boom in selling pressure in the seller's-driven market might soon result in the collapse of this annual support level.
The crucial Exponential Moving Averages (50, 100, and 200) in THORChain price chart achieve a bearish alignment with the recent 100 and 200-day EMAs crossover.
The RSI Indicator at 26% reflects the slope entering the oversold zone in the daily chart as the price succumbs under the selling pressure. Moreover, the falling slope of the 14-day SMA breaks the central line.
The MACD Indicator shows the MACD and signal lines fall under the bearish influence, increased by the recent crossover. The falling histograms gain trend momentum, indicating a rise in selling pressure.
In conclusion, the technical indicators reflect the rising trend momentum of the correction phase. Therefore, the indicators suggest a correction in RUNE below the $3.5 mark.
Upcoming Trend
The RUNE coin price struggles to sustain above $3.5 with lower price rejection candles. However, the increased selling pressure might soon break the annual support level.
Therefore, bears can find selling opportunities shortly with a breakout of $3.5. Moreover, bullish traders can find an entry spot at a more discounted price.
The THORChain price action shows support levels present at $2.15 and $1 in the daily chart. And, on the opposite end, the resistance levels are at $4.5 and $6.
At the time of writing, TradingView gives a "SELL" signal for the RUNE token.
