THORChain Price at Major Support Level; Rebound Or Bears’ Rule?

• RUNE declined by 20% this month, reflecting weakness.
• The THORChain price has slipped below the key moving averages.

THORChain crypto price has been defending the major support level of $5 since February. Currently, the price has slipped below the 200-day EMA and reached the major support level. RUNE has formed a bullish engulfing candlestick on the support level.

Since October, RUNE has been in a bullish trend, but failed to exceed the $7 mark and displayed profit booking for the long term. The price surpassed this mark in March but wasn’t able to sustain, which was followed by three unsuccessful attempts.

At press time, the THORChain price traded at $5.11% with an intraday gain of 4.66%. The market capitalization is $1.66 Billion and the 24-hour trading volume is $246.82 Million. The circulating supply is 335,345,481 RUNE and the total supply is 412,959,692 RUNE.

Strong Buying Momentum Loading…

$RUNE RSI below 30
Time to long? pic.twitter.com/4QQZFnpzUj

— kyle (@CryptoLush_) June 11, 2024

A source on X shows that the Relative Strength Index (RSI) is below 30 which is an oversold zone. The price is on a major support level and the RSI is in the oversold zone, which is a sign of a strong bullish momentum.

Will THORChain Price Extend to the $7 Mark in a Week?

RUNE price has taken support on the $5 mark and formed a bullish candlestick pattern. The overall trend is bullish sellers are strong in the short term. 

After taking support on the $5 mark, the price is heading toward the 200-day EMA. Suppose the price manages to exceed the 200-day EMA with the rise in trading volume, the RUNE crypto price may approach the $7 mark in a week.

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On the other hand, the price below the major support level of $5 might display panic selling. Below the $5 mark, most of the investors might prefer to book profits which may result in strong selling pressure.

According to the technical indicators, RUNE is trading below the key moving averages. RSI is wandering in the oversold zone and a bounce-back is expected. The technical indicators are in favor of a bullish forecast.

RUNE Price Technical Analysis Over 4-H Timeframe

In a 4-H time frame, the THORChain crypto price has declined by forming lower lows and lower highs. Currently, the price formed a small base at the $5 mark and surpassed the 20-day EMA.

Suppose the price is sustained over the 20-day EMA, buyers may lift the price to the 200-day EMA in the next few hours. 

Alternatively, if the price fails to reach the 200-day EMA, then it may generate a lower high and may initiate a bearish trend for the next few days.

Conclusion

The current support level at $5 is being closely watched, and the recent bullish candlestick pattern and oversold RSI indicate the potential for a strong bullish momentum. If the THORChain price manages to sustain above the 200-day EMA with increased trading volume, there is a possibility that the price may approach the $7 mark in the coming week. However, if the price fails to hold above the major support level of $5, it could lead to panic selling and strong downward pressure.

Technical Levels

The RUNE price may face resistance from the $7 and $9.50 levels. It is expected to take support on the $5.00 and $3.90 mark.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.