RUNE Technical Analysis: Token bulls ready to dethrone bears?

• RUNE has taken support from a crucial level.
• Token is facing strong resistance near 50 EMA.

If 2021 was a good year for crypto, 2022 had been a nightmare, and RUNE has had to follow the market as a whole over time. Although it rose throughout March, reaching a high of $13.15 on March 31, things began to fall apart. Following a series of market crashes, it reached a low of $1.45 on June 18, 2022. Following this, there was some recovery, and it was valued $3.14 on August 11, 2022. It was then time to go down again, and a slump turned into a crash when the FTX (FTT) exchange collapsed, causing it to fall below $1.01 on November 9th. After that, there was some recovery and, as of 5 January 2023, it was worth about $1.34.

THORchain (RUNE) on the the daily chart  

RUNE is now trading at $1.34 after bouncing off the support. It is now trading below its 50 and 200 EMA moving averages. (Red line is 50 EMA and the blue line is 200 EMA). As we can see, the token is now encountering resistance at the 50 EMA. Bears were in charge, driving the price of the token down, forming lower highs and lower lows, but now bulls are trying to gain momentum.

Relative Strength Index: The asset’s RSI curve is currently trading at 51.13, indicating that it is in the overbought zone. The RSI curve has crossed above the 14 SMA, indicating bullishness. Bulls are trying to gain momentum  lately, and the RSI curve is also showing strength. If the token crosses the 50 EMA and continues to rise, the value of the RSI curve may rise even further.

Analyst view & Expectations

Rune Token is trading at a strong resistance level; if the token closes over the 50-day exponential moving average, we may witness a short-term bullish trend. Investors should avoid buying now and instead wait for confirmation of the trend. Intraday traders, on the other hand, have a good opportunity to go short if the price closes below $1.25 and can reach the target of $1.10.

According to our current THORChain price prediction, the value of THORChain is predicted to rise by 2.48% in the next few days, reaching $ 1.385489. Our technical indicators indicate that the current sentiment is Neutral, with the Fear & Greed Index reading 29. (Fear). Over the last 30 days, THORChain  had 17/30 (57%) green days and 3.62% price volatility. Investors can buy THORChain once the token closes above the 50 EMA, according to our projection.

Technical Levels

Major support: $1.25

Major resistance: $1.40

Conclusion

After gaining support from the $1.10 level, the token has shown signs of bullish momentum. Investors can buy early or wait for more confirmation.

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.

Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.

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