Thorchain (RUNE) has been rising since February 24, reaching a high of $8.06 on March 15 so far.
RUNE has been declining since reaching an all-time high of $21.28 on May 19. On November 2, the price made a slightly lower high (red icon) and resumed its descent.
The downside movement reached a low of $3.01 on February 24. Since then the price has been moving upwards.
An important development is the fact that the price bounced back three times at the $3.60 horizontal support area, adding to its importance.
Therefore, as long as RUNE is trading above this level, the trend can be considered bullish.
future rune movement
cryptocurrency trader @AltcoinSherpa Tweeted a chart from RUNE suggesting that the price could potentially rise to $8.
A closer look at the movement shows that RUNE broke above the descending resistance line after forming a double bottom. The double bottom is considered a bullish pattern, which means it usually moves upwards, as happened here.
Furthermore, the double bottom was aligned with significant bullish divergence on both the RSI and MACD. Such divergence often precedes an uptrend and further supports the importance of a double bottom pattern.
Moreover, the RSI has now moved above 50 while the MACD has moved into the positive zone.
As a result, the trend is strongly bullish on the daily time frame.
If the upward move continues, the nearest resistance will lie between $10.20 – $11.80. This is the 0.5-0.618 Fibonacci Retracement resistance area.
wave count analysis
The downside movement since the above all-time high looks like an ABC corrective formation (black).
While the waves do not have a comparable Fibonacci ratio, the February 2022 low was swept away by the July 2021 one (red line), making it a valid correction.
The upcoming upward movement also looks impulsive, supporting the possibility that RUNE has started a new upward movement.
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