Thorchain’s RUNE Token Surges 16%, But Investors Should Wait For Pullback Before Buying
The native token of decentralized exchange protocol THORChain, RUNE, rallied over 16% today to around $3.4. This price surge comes after the token broke out above a key descending channel as well as a crucial resistance level at $3, leading some analysts like Captain Faibik to call the start of a potential bull run.
However, investors should proceed with caution before buying into this RUNE rally. The token’s RSI is currently around 70, indicating it is heavily overbought after the latest pump. An RSI above 70 suggests an asset’s price may be due for a pullback or correction soon.
As Captain Faibik pointed out, the weekly candle close will be an important level to watch. If RUNE can close the week above $3, it would confirm a bullish breakout and upside momentum. On the other hand, a close back below $3 could signal the rally was overextended and prime RUNE for a pullback.
Key support and resistance levels to monitor are $2 and $3. RUNE hitting new highs above $3 would confirm the uptrend, while a drop back below $2 could invalidate it. For traders looking to enter a long position, it may be prudent to wait for a pullback or healthy consolidation before initiating a buy. Rushing to buy into strength rarely works out well.
Read also:
- Get Rich With This Brand-New Meme Coin That’s Taking the Market by Storm
- A Weekly Close Above This Channel Top Will Trigger Massive Buys for Dogecoin (DOGE)
- Crypto Lawyer Explains Why Ripple ‘Is Not Going to Abandon XRP’
In summary, while THORChain’s fundamentals and growing DeFi adoption remain bullish, from a technical perspective its RUNE token looks overheated here after the latest pump. Waiting for a correction back to support around $2 before initiating a long position could provide a better risk-to-reward setup.
We recommend eToro
Wide range of assets: cryptocurrencies alongside other investment products such as stocks and ETFs.
Copy trading: allows users to copy the trades of leading traders, for free.
User-friendly: eToro’s web-based platform and mobile app are user-friendly and easy to navigate.
