THORChain (RUNE) Tumbles 11% Amid Market Slump, Eyes $4 Support

Key Takeaways

• RUNE dropped 11% in 24 hours.
• THORChain’s key support level lies between $3.8 and $4.
• RUNE could bounce from oversold conditions.

August kicked off on a bearish note, with double-digit drops across the market. THORChain’s RUNE token was no exception, posting a decline of 11% over the past day and a total decrease of nearly 29% from the previous high on July 22. 

With RUNE rapidly approaching its horizontal support zone between $4 and $3.8, the question remains: can it hold above it, considering the downward momentum? 

RUNE Price Analysis 

On March 12, RUNE peaked at $12, finishing its five-wave uptrend, after which it started its bearish phase. It dropped to $4.50 on April 13 and recovered by over 50%, reaching just above $6 on May 11. However, the token experienced another tumble, leading to a lower low of $3 on July 5. 

There are reasons to believe the recent drop concluded RUNE’s long-lasting correction from mid-March. First, the daily chart RSI fell to the oversold zone at 22% on June 18 and stayed below it until July 5. 

Second, the rise from there led to a 65% recovery to a high of $5 on July 29. A breakout above the descending resistance line from mid-March could have signaled the start of a new bull phase, but since the price made a sharp downturn, we will now look for more confirmation. 

RUNE Price Prediction 

Upon closer examination of the RUNE’s hourly chart, we can observe that the July 29 high of $5 likely marked the completion of a five-wave pattern that began on July 5. Furthermore, this upward movement may be a corrective phase, with the second sub-wave having now concluded its corrective stage upon interacting with the 0.5 Fibonacci level.

The hourly chart RSI points out the oversold conditions, as it did on July 25 when we saw an uptrend start, so a bounce from $4 support looks likely. However, because the uptrend’s ending point is still unclear, whether it was on July 22 or 25, we can expect RUNE  to rise to at least the $4.60 mark. 

If RUNE faces resistance, there could be another downturn to the 0.618 Fib at $3.80 before a new uptrend can commence. However, RUNE could look at a stronger uptrend if it continues above it, leading to values above $7.

About the Author

Nikola Lazic

Nikola Lazic is a cryptocurrency analyst and investor working in the industry since 2017. He holds a bachelor's degree in Sociology, which enables him to better understand the psychology behind the crowd´s positioning. Consequently his preferred analytical tool is Elliott Wave Theory in combination with price action analysis. Combining his experience in trading and investing with knowledge in content writing he strives to bring the most accurate and actionable information. Expertise: Cryptocurrencies, Technical analysis, Elliott Wave Theory, On-chain metrics, Research reports.

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