THORChain (RUNE) has been trading in a channel since November, but recently broke out from it in the first week of March. However, profit booking halted its upward trend, causing it to reenter the channel. The price attempted to surpass the major resistance level of $7 in May but failed and has been gradually declining since then.
The bearish trend in RUNE seems to have ended at the major support level of $3.50. Currently, the price is in a buying zone and has the potential to gain around 60% in a month. As of now, THORChain is trading at $4.51, with a market capitalization of $1.51 billion and a 24-hour trading volume of $168.37 million.
Crypto analyst Cool Dog (@Cool1Dog) believes that the RUNE price is ready to shoot up soon. He suggests that buying at the current price below $5 could be considered a discount, and once the price surpasses the yearly high and turns into support, it may perform well.
In terms of technical analysis, the RUNE price has formed an inverted head and shoulder pattern on the daily time frame and is trading just below the 200-day exponential moving average (EMA). If the price exceeds the 200-day EMA and the trading volume supports this momentum, it could easily form the second shoulder and potentially gain around 60% in a month.
However, a bearish candlestick near the 200-day EMA could push the price down to the major support level. If the price slips below this level, strong selling pressure may occur, potentially leading to an all-time low.
In terms of technical indicators, the RUNE price has broken above the 20-day EMA and is heading towards the 200-day EMA. The MACD has also formed a golden crossover with the signal line and is now in positive territory. The histograms have turned green, indicating a bullish forecast.
Considering the bullish patterns and signals, as well as positive sentiments from crypto analysts, the current buying zone for RUNE has the potential for a 60% price gain in a month. However, it is essential to monitor key levels such as the 200-day EMA and major support levels to determine if the bullish momentum can be sustained and if the price can surpass key resistance levels for significant gains.