RUNE The price continues to record a ‘forming streak’ lower, having recently crossed below the 50-day EMA. Although the cryptocurrency market showed a recovery after the ETF news, Thorchain price failed to benefit from it.
While the sellers make their presence felt, the price continues to struggle with important support levels. However, on-chain data suggests an uptrend for the RUNE price of 2024.
With a bearish engulfing candle formed from the 50-day EMA, RUNE price fell 10.54% last night. Moreover, the sharp decline leads to an evening star formation above the $5 psychological resistance on the daily chart.
bearish formation ThorchainIt brings it back to the key support at $4.5 and close to the 50% Fibonacci level. This decline comes with the possibility of a bullish reversal in a double-bottom pattern as the price picks up the second support.
Currently, RUNE price is trading at $4.53, trading with an intraday candlestick Doji bar. But with a morning star it increases the likelihood of a reversal. However, it looks like solid overall supply could result in a consolidation phase before a definitive breakout.
RSI indicator: The daily RSI is showing a bullish trend following the last two declines from the $4.5 base. This indicates an increasing possibility of a reversal with a double bottom formation.
EMA: Bullish failure of the 50-day EMA to provide dynamic support indicates increasing selling pressure. Moreover, the declining 50-day EMA warns of a deeper correction.
However, traders may be more cautious and wait for a decisive break of the 50-day EMA to find a safer entry. In case of a bullish breakout, RUNE price could reach the $7 level. On the other hand, a break below $4.3 could drop the price to $3.64.