RUNE witnessed decisive reversals from the 23.6% FIB mark within the previous day. Buyers appeared dedicated to breaching the shackles of the Exponential Moving Average ribbons. However, bears were not ready to surrender their long-term regime.
Meanwhile, sellers and buyers might continue wrestling at the POC (Point of Control) as the market structure re-defines. While publishing this blog, RUNE traded at $2.576, following an 11.69% slump within the past 24 hours.
THORChain Daily Timeframe
RUNE has shown weakness in the charts since April’s early sessions. Sellers continued to secure new lows within the past months after the asset witnessed several steady rallies. However, the prevailing downside eventually experienced cooldowns around the $1.4 mark. Consequently, the alternative token printed an upward channel over the past few weeks.
The upward channel trajectory might (now) slow down around the 23.6% FIB mark at the $2.9 area. Buyers’ inability to trigger a bull crossover on the Exponential Moving Average ribbons might further constrict the resurgence endeavors.
A closing beneath the ribbons might strengthen the current sluggish period around the Point of Control. A break beneath the pattern might drag RUNE to the value area of $1.4 – $1.6 before plausible recoveries. Meanwhile, bearish invalidations might face a ceiling at the $3.4 zone. Nevertheless, investors should wait for a closing beyond 23.6% for the target.
Reasoning
The RSI (Relative Strength Index) maintained its sway within the bullish area while keeping the upward channel setup. Reversals from this formation might welcome near-term setbacks in THORChain’s charts. This reading implies possible losses before bulls reclaim upside tendencies.
Moreover, the on-balance volume’s lower highs over the past few weeks have bolstered the probabilities of a massive bearish divergence with RUNE price. Despite this bullish edge, sellers might ensure a spoilsport if the OBV maintains its southbound trajectory. However, the ADX showed a weak directional bias for RUNE.
Final Thought
Considering the immediate 23.6% hurdle plus the ascending channel setup, THORChain might see short-term pullbacks. Meanwhile, the long-term picture could shift to bullishness if the EMA ribbons on the daily chart undertake a bullish overturn. Targets would remain as highlighted above. Lastly, enthusiasts should watch Bitcoin as its movements impact overall market perception.
Editorial credit: FellowNeko / shutterstock.com