- The Thorchain token is looking in a bullish zone as of the higher time frame, but on the other hand, it has seen a weak trend this week.
- The 20-day moving average is seen above the current price of RUNE, well below the value of the rest of the EMA token.
- Last night there was a 30% drop in trading volume for the RUNE token.
The Thorchain token registered a sharp selloff below the supply zone (red) in early 2022, resulting in RUNE reaching a low of $3.0 on February 24th. Above the lows, RUNE token price action suggests a double bottom formation (the biggest sign of a bullish rally).
However, this week RUNE holders are struggling to regain their dominance over the directional trend. After 6 solid bullish weekly candles, the coin is down 14% this week. Thus, RUNE is trading at $9.65 at the time of writing, which is up 4.3% according to CMC. Similarly, the RUNE/BTC pair is in the green zone by 4.3% the same USDT pair, and is trading at 0.0002215 Satoshis.
Now Thorchen is looking at the critical supply area (red) as well as the green signal line of the Super Trend indicator in the context of the daily price chart. Intraday trading volume has been steadily falling since the start of the bounce back and reached $213 million last night, with the loss of 30%.
Would you buy RUNE in this dip?
As per the daily price chart, the RUNE token struggled to manage a price rise above the 20-day SMA. The remaining 50, 100 and 200 EMAs are well below the current price.
The daily RSI retests the half-line (50 points) twice this week after reversing from the overbought zone. Below the half-line, bears may act aggressively for a bullish sell-off.
ThorChain Token price is on a bullish trend with ADX at 40 points but it is also starting to decline.
Conclusion
Thorchain coin appears to be in a retracement phase until it breaks below the $8.0 mark (near-term support). However, the bulls will have to exert more influence to manage the cost of the asset above the 20 EMA line.
Support level – $8.0 and $5.0
Resistance level – $10 and $17
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish the financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
