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THORChain price eyes 10% rally as RUNE bulls make a comeback

  • THORChain price flipped a four-hour resistance level at $4.68 into a support floor.
  • Increasingly bullish momentum indicators support the idea of a breakout rally to $5.22.
  • A lower low below $4.45 will invalidate the bullish thesis for RUNE.

THORChain (RUNE) price has flipped a hurdle into a support floor and hints at an upcoming rally. RUNE holders could expect the newly flipped foothold to trigger a bounce to subsequent key hurdles. 

Read more: THORChain price climbs 15% as native RUNE secures self-custody wallet integration

THORChain price ready to move higher 

THORChain price has been on a downtrend for nearly seven weeks and has shed 41% so far. The recent move, however, seems to have flipped the $4.68 hurdle into a support floor, indicating a key shift in market structure favoring bulls. 

Moreover, this flip of the hurdle into a support floor comes with the Relative Strength Index (RSI) crossing above the 50 mean level, adding credence to the uptick in bullish momentum. Awesome Oscillator has also moved above its 0 mean level, further denoting a sustained increase in bullish momentum. 

Going forward, investors can expect THORChain price to kickstart a 10% move to the daily resistance level of $5.22. In its ascent to the target, RUNE holders can book partial profits at $4.88 hurdle. 

RUNE/USDT 4-hour chart

RUNE/USDT 4-hour chart

While the bullish outlook for THORChain price is logical and backed by supporting indicators, investors need to note that the volatility after Bitcoin spot ETF approval has reduced on a relative basis. Therefore, the rally might be extremely slow or in some cases, it could fail to propel higher.

In such a case, if there is a spike in selling pressure that pushes THORChain price to produce a lower low below $4.45, it will invalidate the bullish thesis. In such a case, RUNE could crash 4% and tag the January 8 swing low at $4.27. 

Author

Akash Girimath

Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.

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