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THORChain has achieved a stable outlook under the influence of an expanding channel formation, capturing a continuous recovery in the price of (RUNE). Over the past two months, the price has rebounded twice from the lower trend line and twice from the upper trend line, creating a strong impact on market participants. Therefore, investors and traders are preparing for the altcoin to rise due to high demand pressure at the lower trend line of the formation.
Can the Price of RUNE Bounce Back from the $1.5 Support?
After extraordinary jumps and drops in the price of RUNE, the price has started moving within an expanding channel formation. The diverging trend lines of the chart formation reflect increasing volatility. Amidst the recent decline in the cryptocurrency market, the price has pulled back from the overall resistance trend line at $2.26 and completed a negative cycle to test the lower support trend line. This decline has reduced the current trading price of the altcoin to $1.64, resulting in a 27.5% loss over the past two weeks.
However, with the additional support of the 200-day EMA, THORChain’s RUNE manages to absorb the selling pressure and avoids breaking the support trend line around $1.55. With the newly formed morning star formation, buyers are close to initiating a positive cycle within the channel.
With an optimistic perspective, the overall market trend indicates the possibility of a recovery rally with this October season, allowing buyers to regain upward momentum. In such a scenario, the price of RUNE could surpass the psychological level at $2 with a gain of over 20% and potentially move towards breaking the recent peak level at $2.26.
The Decline Could Find Support Around $1.4
If sellers manage to control the rise, they can break the support trend line, potentially significantly increasing the downward trend momentum with a breakout that fuels the downtrend. Therefore, there is a possibility of the decline continuing towards around $1.38.
On the chart, the fact that the price is trading above the 100-day and 200-day Exponential Moving Averages (EMA) indicates that the overall market sentiment is bullish. Additionally, the Relative Strength Index (RSI) above the 40 level reflects sufficient upward momentum for the price to rise.
