Thorchain price analysis: If RUNE sees a bearish closing this week, does that mean it is headed downwards?

• The Thorchain token is trading near a critical supply area during the retracement phase.
• The RUNE token is trading below the 20-day EMA and the rest of the EMAs such as the 50,100 and 200 EMAs are below the current price.
• The RUNE/BTC pair is trading at 0.0002152 Satoshis, which is slightly higher by 3.9%.

This week, Thorchen created a bearish weekly candle, causing purchasers to lose almost 17% of their investment. Unfortunately, in early 2022, the Thorchain token saw a severe selloff below the supply zone (red), resulting in RUNE reaching a low of $3.0 on February 24th. RUNE token price behavior above lows signals a double bottom structure (the most important indicator of a bullish rally) before a bounce.

After a sharp decline, RUNE consolidated above the key support area (red), which pulled the price below the psychological round level of $10 (turned into resistance). Thus, RUNE is trading at $9.2 at the time of writing, which is a little higher by 5.2% over the past 24 hours according to CMC. Similarly, the RUNE/BTC pair is trading at 0.0002152 Satoshis, which is slightly higher by 3.9%.

Currently, the RUNE token is trading below the 20-day exponential moving average (EMA). Other EMAs, such as the 50, 100, and 200 EMAs, are also trading below the current price. RUNE token has been gradually losing liquidity since March 11; Hence the bears are not able to break the asset price below the $8.0 support level. Meanwhile, RUNE saw its trading volume drop by 12% in the last 24 hours.

In what direction should we go next?

Following a reversal from the overbought zone, the daily RSI retests the half-line (50 points) twice this week. Bears may engage in an aggressive action for a bullish sell-off below the half-line.

In the short term, ThorChain Token is on a bullish trend with ADX at 35 points, but it is also beginning to decline.

Conclusion 

There is a retracement phase for the Thorchain coin, but it will break below the $8.0 mark (near-term support) before it breaks through the top of the cycle. In order to control the cost of the asset above the 20 EMA line, however, the bulls must exert more influence.

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.

ALSO READ: The drop in Bitcoin led to liquidations of $439 million!

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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