THORChain Showed A Fakeout: Can RUNE Bulls Cross The $5 Mark

The THORChain (RUNE) token failed to accelerate beyond the bars and faced rejection from the 200-day EMA mark this week. Amidst the significant breakout, RUNE could not attain follow-on buying momentum.

The RUNE token was trading inside a falling wedge pattern and persisted in displaying the lower low swings. The bulls gained strength and attempted to cross key hurdles this week.

Interestingly, the token gave a breakout and reached its pivotal hurdle of $5 near the 200-day EMA mark cluster. From there, a meaningful rejection occurred, and the token took a turn back.

However, the price action still guided the neutral projections, as RUNE had retested the 20-day EMA mark. The investors were in a dilemma. A follow-on selloff could come if the RUNE bulls failed to secure the $4 mark.

Conversely, if RUNE reverses from the 20-day EMA mark and retains momentum above the $4.80 mark, it would cross the $5 mark. That might lead to a notable upmove ahead.

The RUNE Price at Press Time

When writing, the THORChainwas trading at $4.20 with an intraday drop of 9.84%, reflecting neutrality on the charts. Its monthly return ratio was 3.40% and 347.20% yearly, reflecting short-term consolidation.

The pair of RUNE/BTC was at 0.0000664 BTC, and its market cap was $1.29 Billion. Analysts were bullish and suggested that the RUNE price may regain momentum and soon cross the $5 mark.

Can THORChain (RUNE) Succeed in Crossing the $5 Mark?

This week, the THORChain price reached its most vital resistance mark of $5 and showed a fakeout on the chart. The mighty bears succeeded in trapping the bulls, and a reversal was noted.

The RSI curve reverted from the overbought zone and reached the midline. It noted a negative crossover, implying a change in the market dynamics.

@CryptoNewton, in his X post, highlighted that it has made a butterfly formation, and the next leg would be toward the $10 mark.

$RUNE pic.twitter.com/TQVSETM28O

— Shelby (@CryptoNewton) July 24, 2024

The ongoing price action signified a sustained downward trend, and the investors were looking into a dilemma. A lack of clarity would exist until the $5 mark’s resistance was crossed.

Total Liquidations Chart

Following the price cut of over 10% intraday, it triggered a surge in long liquidations. This liquidation event brought the RUNE price toward its vital 20-day EMA support zone.

Liquidations Data | Source: Coinglass

When writing, the long liquidations were noted at $83k, whereas the short liquidations were noted at $1.20k. It meant that bears outpaced the bulls, and a significant decline could be anticipated.

The immediate support levels for the RUNE token are $1.80 and $1.30, whereas the key upside hurdle is around $2.40, followed by $3

Can RUNE Retain the Bullish Momentum?

The RUNE token price has retraced to the 20-day EMA mark. A fake breakout led the bulls to be trapped, and the token faced a significant price cut.

Once it rescues the gains and comfortably holds gains above the 20-day EMA mark, it might cross the $5 mark again.

Source