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THORChain (RUNE) Ready For 20% Climb Before Next Correction

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The price of cross-chain exchange THORChain (RUNE) has increased by 8.12% over the past two days. Surprisingly, RUNE price maintains its bullish band as it races above the ascending parallel channel pattern. Moreover, the reversal seen at the support trendline could also trigger an uptrend as it breaks through the resistance trendline.

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On the other hand, according to technical analysis, this particular pattern could trigger a price correction after breaking the lower trendline. The EMAs are visible at $2.5, indicating strong resistance to the downside. Thorchain’s 24-hour trading volume recorded a loss of 44.6% or $291.6 million.

THORChain will break the resistance trendline

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RUNE/USDT recovers on June 18 when it managed to rebound from its $1.45 low. RUNE price has set ATH at $3.04, or a 108% gain in the past six weeks since bottoming out.

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Moreover, the massive sell-off that took place over the weekend also caused a slight correction in the pattern. Merger support acted as a buffer, pushing RUNE’s price up 5.66%.

RUNE is currently trading at $2.69, down 1.70% at the time of this writing, according to CoinMarketCap. However, with the channel pattern, the coin needs to rise by 22% to break the top line.

Under the most favorable conditions, the price of RUNE can break through the resistance line and accelerate the bullish move. But in theory, the rising channel pattern is likely to indicate bearish momentum, especially after RUNE breaks through the support line. With this in mind, the price of RUNE is prone to more correction if it breaks the lower trendline.

The two peaks of the RSI show some slowdown from a bullish perspective. In any case, when the divergence increases, traders can better confirm the impending correction. Looking at the 20- and 50-day EMAs heading for the crossover noted at $2.5, the chances of a recovery above the resistance line are expected to increase.

DeFi Tokens Like RUNE Are Reviving

DeFi tokens such as RUNE, SNX, and LDO are in the midst of a renaissance. On August 3, RUNE registered a surge of 11.51%. Although they have not risen above the red lines, RUNE, like other DeFi protocols, has made a significant leap so far.

In other news, THORChain recently toggled a kill switch that will disable support for RUNE BEP-2 and ERC-20 based variants. IOU tokens are now being replaced by the native RUNE token after the THORChain mainnet which happened last month.

Old tokens will lose their value over the next 12 months, so these tokens will be automatically upgraded to native RUNE. This move was initiated to further decentralize the network.

RUNE total market cap at $885 million on the weekly chart | Source: TradingView.com

Featured image from Coinpedia, chart from TradingView.com



Credit : www.newsbtc.com

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