THORChain is gearing for a 20% climb before the next correction as the price of THORChain (RUNE) has increased by 8.12% over the last two days. Amazingly, the RUNE price continues to rise while breaking through the rising parallel channel pattern. A reversal at the support trendline may also spark a bull run as it breaks through the resistance trendline, which is why it is so important.
Regarding technical analysis, on the other hand, this specific pattern may cause a price correction after a breach from the bottom trendline. At $2.5 the EMAs are clearly showing strong downward resistance. The trading volume for Thorchain over a 24-hour period showed a loss of 44.6 percent, or $291.6 million.
THORChain Is About To Cross The Resistance Trendline
On June 18, when it was able to recover from its low of $1.45, the RUNE/USDT pair is seen to have made a comeback. Since it bottomed out, the RUNE price has increased by 108 percent, or $3.04, over the past six weeks. Thus we can say that THORChain is gearing for a climb.
Furthermore, the significant sell-off that occurred over the weekend also caused a minor adjustment to the pattern. As a buffer, the confluence support raised the price of RUNE by 5.66 percent.
RUNE is currently trading at $2.69 on CoinMarketCap, down 1.70 percent as of the time of writing. The coin should spike by 22% to punch through the overhead line using the channel pattern, though.
In the best-case scenario, the coin price might be able to cross the resistance line and quicken the bullish trend. The rising channel pattern, however, theoretically suggests a bearish momentum, particularly once RUNE crosses the support line. As a result, if the price of RUNE breaches the lower trendline, further corrections are likely.
The two RSI peaks indicate a slight slowdown from a bullish stance. In any case, traders may have better confirmation of an impending correction as the divergence increases. The likelihood of a recovery above the resistance line is anticipated to increase based on the 20- and 50-day EMAs shooting for a crossover at $2.5.
RUNE-Like DeFi Tokens Are Coming Back
DeFi tokens like RUNE, SNX, and LDO are currently experiencing a resurgence. RUNE experienced an increase of 11.51 percent on August 3. RUNE and other DeFi protocols have progressed significantly so far, despite the fact that they haven’t yet risen above the red lines.
In other news, THORChain recently flipped a switch that will make the RUNE BEP-2 and ERC-20 variants no longer supported. Following THORChain’s mainnet launch last month, IOU tokens are now being exchanged for the native RUNE token.
Because the old tokens will lose value over the next 12 months, they will be automatically upgraded to the native RUNE. The intention behind this action was to further decentralize the network.
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