THORChain price eyes 10% rally as RUNE bulls make a comeback

THORChain price flipped a four-hour resistance level at $4.68 into a support floor.
Increasingly bullish momentum indicators support the idea of a breakout rally to $5.22.
A lower low below $4.45 will invalidate the bullish thesis for RUNE.

THORChain (RUNE) price has flipped a hurdle into a support floor and hints at an upcoming rally. RUNE holders could expect the newly flipped foothold to trigger a bounce to subsequent key hurdles.

THORChain price ready to move higher

THORChain price has been on a downtrend for nearly seven weeks and has shed 41% so far. The recent move, however, seems to have flipped the $4.68 hurdle into a support floor, indicating a key shift in market structure favoring bulls.

Moreover, this flip of the hurdle into a support floor comes with the Relative Strength Index (RSI) crossing above the 50 mean level, adding credence to the uptick in bullish momentum. Awesome Oscillator has also moved above its 0 mean level, further denoting a sustained increase in bullish momentum.

Going forward, investors can expect THORChain price to kickstart a 10% move to the daily resistance level of $5.22. In its ascent to the target, RUNE holders can book partial profits at $4.88 hurdle.

RUNE/USDT 4-hour chart

While the bullish outlook for THORChain price is logical and backed by supporting indicators, investors need to note that the volatility after Bitcoin spot ETF approval has reduced on a relative basis. Therefore, the rally might be extremely slow or in some cases, it could fail to propel higher.

In such a case, if there is a spike in selling pressure that pushes THORChain price to produce a lower low below $4.45, it will invalidate the bullish thesis. In such a case, RUNE could crash 4% and tag the January 8 swing low at $4.27.

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.