THORChain (RUNE) Breaks Down From 300-Day Horizontal Support Area

THORChain (RUNE) has broken down from both long- and short-term support levels and has yet to show any signs of a bullish reversal.

RUNE has been decreasing underneath a descending resistance line since reaching an all-time high price of $21.28 on May 19, 2021. The line has been validated thrice, most recently on March 31.

Since July 2021, the price had been trading above the $3.60 horizontal area, which initiated several bounces. However, it seemingly broke down from the area on May 16, even though it has yet to reach a weekly close below the level. 

If the downward movement continues, the next closest support area would be at $0.70.

Cryptocurrency trader @PostyXBT tweeted a chart of RUNE, asking if the $3 area will be able to initiate a bounce once more. Since the tweet, the price has broken down from this area but has yet to reach a close below it.

RUNE breaks down

The daily chart shows no signs of a potential bullish reversal. 

Firstly, it shows that the price has actually broken down from the $3.60 support area and has now validated it as resistance (red icon).

Secondly, the RSI is following a descending trendline and is below 50. These are both considered signs of a bearish trend. 

Finally, there is no bullish divergence in the RSI.

Similar to the daily chart, the two-hour shows that the price has broken down from an ascending support line. The breakdown was also combined with an RSI breakdown (green line), increasing its validity.

Wave count analysis

The wave count suggests that since the aforementioned all-time high, RUNE has been decreasing inside an A-B-C corrective structure (black). If so, it is currently in wave C, which is expected to end close to $0.60

The sub-wave count is given in white.

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