Since the latter half of March, the cryptocurrency market has adapted a recovery sentiment. With increasing underlying bullishness, the RUNE buyers breached a few important resistances such as $5.8, $9.2, and now $11.8. Can buyers sustain the fresh breakout for another leg up?
Key points
- RUNE price forming a rounding bottom pattern in the daily time frame chart
- The buyers are struggling to sustain above the $11.8 mark
- The 24-hour trading volume in the Thorchain coin is $391.2 Million, indicating a 5.97% loss.
Source-Tradingview
The THORChain(RUNE) buyers escaped from its accumulation phase on March 12th, with a decisive breakout from $5.8 resistance. The post-retest rally soared 42% by forming six consecutive green candles and reached the $9.3 mark.
After a minor pullback, the renewed buying pressure breached this overhead resistance($9.3), followed by $11.8. As a result, the RUNE price has registered a 200% gain since the beginning of March.
Today, the altcoin retested the $11.8 mark to obtain sufficient demand for further rally. However, the long-wick rejection attached to daily candles suggests sellers are aggressive on a higher level.
If RUNE sellers force a candle closing below the $11.8 mark, the traders can expect a minor correction to the $9.25(0.328 Fibonacci retracement level) or $8 mark(0.5 FIB).
Contrary, if buyers could sustain above the $11.8 mark, the follow-up rally could hit an 18% high $14 resistance.
Technical indicators:
The recovery rally has retrieved the crucial EMAs(20, 50, 100, and 200), suggesting the buyers are back in the driving seat. Moreover, a golden crossover among the 50-and-200-day EMA lures more buyers into the market.
The vortex indicator widens its gap between the VI+ and VI- slope, indicating strong bullish momentum.
- Resistance levels: $14 and $16.7
- Support levels: $9.3 and $8
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Source: https://coingape.com/markets/throchain-price-analysis-rune-parabolic-rally-sliced-through-another-resistance-should-you-accumulate-more/