After suffering a drop over 96% since its ATH, THORChain has performed over 112% since its last low. What are the future prospects for the multi-chain project?
Status of the RUNE
Lately, the price of THORChain has come to rebound slightly below $0.80. It is now trading around $1.5.
The current technical analysis was carried out in collaboration with Elie FT, passionate investor and trader in the cryptocurrency market. Today a trainer at Family Trading, a community of thousands of own-account traders active since 2017. You will find Lives, educational content and mutual aid around the financial markets in a professional and warm atmosphere.
Unsurprisingly, the THORChain is mostly purchased. The latter came to consolidate slowly by forming lower and lower troughs, respecting a bearish trendline now broken on the upside. Now the RUNE is tackling new resistances that could be legitimately defended in view of the VRVP. RUNE price is now above the 50 and 200 daily moving averages. This is intended to be positive, however the latter are crossed on the downside. On the RSI side, we can see that the THORChain is clearly overbought, being above the 90 threshold.
The indicators that may particularly surprise are the open interest and the Funding Rate. Indeed, each of these indicators marked a historic level on the RUNE.
. The OI literally exploded within days. This demonstrates a real attraction of investors on the THORChain.
. The Funding rate of the RUNE came to collapse. This can encourage buying pressure on the THORChain.
Assumptions for the course of the RUNE
For a bullish scenario, one should consider breaking above the $1.5-1.7 area. If this resistance is broken upwards then, we could have a more bullish outlook, being able to give $2 as our next objective then $3 for a more distant horizon.
For a bearish scenario, one should consider a bounce down on the $1.5-1.7 area. Thus, we could have as a first objective the support of $1.2. If this level does not hold, then the next target could be the psychological threshold of $1.
Conclusion
In recent days, THORChain has outperformed the crypto market. Some RUNE indicators do show growing investor interest in cryptocurrency. This is meant to be promising, but be careful, we must not forget that a market never spins in a straight line. Thus, it will be important to carefully observe the reaction of the price on the different identifiable levels to confirm or not the different hypotheses made. Beware of potential “fake outs” and “market squeezes” in each situation. In addition, it should be remembered that these scenarios are based solely on technical analysis. The price of cryptocurrencies can move more or less quickly, depending on other more fundamental factors
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