THORChain (RUNE) Leads Market With 12% Gain— Is a Breakout From Descending Resistance Next?
RUNE recovered significantly from its recent Aug. 5 low and is now approaching its long-lasting descending resistance. Will it manage to break it?
Key Takeaways
- RUNE gains 12%, leading the top 100 tokens.
- Kujira partnership boosts THORChain’s liquidity and ecosystem strength.
- Potential uptrend confirmed if RUNE breaks $4 resistance.
THORChain’s RUNE token surged by 15% from its opening yesterday, maintaining a strong momentum with a 12% gain, making it the top performer among the top 100 cryptocurrencies for Aug. 14, according to CoinMarketCap .
As it approaches a critical descending resistance, the question remains: Will RUNE gather enough strength to break through and kickstart its next long-term bull run?
What Drove The Rise?
THORChain’s market performance can be attributed to its new partnership with Kujira, which aims to enhance liquidity in the latter’s decentralized finance applications.
This partnership is notable for its community-driven token raise, which fosters greater community involvement and aligns the economic interests of both platforms, strengthening their ecosystems.
In addition, THORChain has partnered with SwapKit and Noble to integrate stablecoins into its AppLayer, simplifying user deposits with native USDC issuance.
These collaborations reflect a broader trend in the DeFi space, where platforms are joining forces to improve liquidity, user engagement, and financial stability.
Lastly, the prevailing bullish environment of the crypto market added to its momentum as Bitcoin surged past $61,000.
RUNE Price Analysis
On March 12, RUNE peaked at $12, completing its five-wave uptrend before entering a bearish phase. The price then dropped to $4.50 by April 13 but managed a 50% recovery, reaching just above $6 on May 11. However, another decline soon followed, pushing RUNE to a lower low of $3 on July 5.
There were early signs that this July low might mark the end of RUNE’s extended correction that began in mid-March.
The daily RSI had dipped into the oversold zone, hitting 22% on June 18, and stayed there until July 5. Following this, RUNE staged a 65% recovery, climbing to $5 by July 29.
While a breakout above the descending resistance line could have confirmed a new bull phase, the subsequent sharp decline suggests we’re still awaiting clear confirmation.
On Aug. 5, RUNE hit another lower low at the $2.5 area, touching its descending support once more. The bounce from this level sparked an immediate 15% recovery, closing the daily candle with a larger wick, ultimately leading to a 46% rise by today’s high.
The daily RSI again dipped into the oversold zone, and on August 13, the MACD formed a golden cross, signaling a potential uptrend.
RUNE Price Prediction
Two more waves prolonged the previously anticipated WXY correction until July 5. This implies that the low on Aug. 5 marked the completion of a WXYXZ pattern from mid-March.
If this is true, then the rise since then could be the starting bullish phase, leading to a breakout above the descending resistance.
The hourly chart shows that RUNE could be in its lower degree wave 3 from the five-wave impulse pattern.
To confirm this assumption, we need to see another higher high as an interaction with the descending resistance, preferably a breakout attempt, at around $4.
Should this develop, and RUNE proceeds with an uptrend for another higher high of $4.50, the breakout will be validated.
THORChain Price Breaks Out From Resistance – 140-Day RUNE Correction Finally Over
