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THORChain Price Prediction As Buyers Escape a Year-long Accumulation – Crypto News

Published

2 years ago

October 31, 2023

Dripp

THORChain Price Prediction: The RUNE Price breakout from its long sideways trajectory indicates an early sign of an upcoming bullish trend.

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THORChain Price Prediction: Last week, the cryptocurrency market witnessed heightened volatility, with major coins stalling due to overhead supply pressures. Bucking this trend, the RUNE price showcased a significant recovery, underpinned by escalating trading volumes. Amid this rally the buyers broke free from a year-long period of sideways action, suggesting early indications of a trend reversal.

Also Read: Why Is Bitcoin Price Rising Suddenly, Will It Continue to Rise?

Why is RUNE Price Rising?

As per the Coinglass data, the THORChain coin has been witnessing heavy short liquidation since last week, which is also a key reason for the current recovery.
A decisive breakout from the expanding channel pattern set the prices for a prolonged rally.
The intraday trading volume in RUNE is $218 Million, indicating a 117% gain.

THORChain Price Prediction Source- Tradingview

Over the past two weeks, the THORChain coin price has ascended steadily, leaping from a psychological support level of $1.5 to its current trading price of $2.9. This substantial 94.8% rally is bolstered by growing trading volume, highlighting strong buyer conviction to push the coin to higher heights.

On October 26th, the rising price gave a decisive breakout from the resistance trendline of an expanding channel pattern that had been constraining its price for over a year. This pivotal moment signals the end of a long accumulation phase and serves as an early sign of a trend reversal.

With an intraday gain of 5.75% and a suitable surge in trading volume, the RUNE price appears on track for another 8.6% surge before encountering its next major resistance level at $3.15. Should the bullish momentum persist, the buyers could extend the recovery trend to $3.8 and possibly the $5.22 marks

Is a Correction Underway?

Despite the strong bullish undercurrents, it’s essential to recognize that such meteoric ascents often necessitate minor pullbacks for a more sustainable uptrend. Historical analysis of Rune Coin reveals three corrections during its recent four-month rally, each staying above the 50% or 61.8% Fibonacci retracement levels. Therefore, investors may continue to maintain a bullish outlook unless the price dips below the 50% retracement level, currently situated at $1.89.

Average Directional Index: The daily ADX reading of 38 suggests that buyer exhaustion may be nearing, underscoring the potential need for a minor price correction.
Exponential Moving Averages: A pronounced upward shift in key daily EMAs (20, 50, 100, and 200) affirms the prevailing bullish sentiment.

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