THORChain (RUNE) Analysis: The Bears are winning the Bulls Vs Bears fight for RUNE

• RUNE is facing bearish force after a drop in its weekly performance by 8%
• The token saw a steep fall in its market cap and trading volume in the last 24 hours
• It tried recovering from a recent market correction but went bearish anyway

THORChain, or RUNE, is currently suffering from a damaging bearish momentum. The token saw a fall in its price yesterday by 3% and continues to face the downfall. The trading volume is down by a great margin of 48%. The market cap was also reduced by almost 3%. 

The RUNE/BTC pair is underperforming by 3.33%, totaling 0.0001966 BTC. The same stands for the RUNE/ETH pair, as it suffered from an intraday loss of 5.30%, valuing at 0.002675 ETH. The volume/market cap ratio is currently 0.02666. The current market price is right in between its one-month high and low. However, the token performed terribly in the last 24 hours and is currently near its 24-hour low. 

The signs of a bearish trend are overwhelming for RUNE. The trend below the candlesticks is going in the downwards direction. The token is currently trading below major EMA lines. The 200 EMA line is a good indicator of breakouts and breakdowns on the chart. Using that, one can spot that the token only experienced a breakout for minutes before going down the MA lines. RUNE tried recovering from the unexpected market correction (purple rectangle) but immediately succumbed to the downfall.

Oscillators terms RUNE as a risk for now

After last month’s great climb to the top, RUNE failed to continue the positive trend and dived deep down. The 4-hour time frame chart shows the past performance of the token. After climbing and creating breakout peaks along the way, RUNE suddenly went down in a symmetrical manner, which is a clear sign of bearish momentum. The MACD line along with the signal line is running below the zero level. This indicates that investors should reconsider investing in RUNE if their motive is intraday trading. The asset owners can think of holding and waiting for a trend reversal. A similar evaluation comes out of RSI. The oscillator indicates RUNE being neutral, but near to the extremely oversold region. 

Resistance is at $13.864 and support is at $11.422.

Conclusion- THORChain may continue going down along the current bearish trend. Unless it doesn’t break the resistance, the token will continue to suffer from the price reduction. Until then, if someone is still considering investing then it is advisable to not invest for short-selling. 

Nonetheless, it is a request to perform an analysis on your own before investing and considering the market risks. 

Resistance- $13.864

Support- $11.422