- RUNE price takes another drop to the crucial support of $4.50 and teases a double bottom reversal.
- The RUNE price trends lower than the 50D EMA and finds support at the 50% Fibonacci level.
- The bullish reversal with a double bottom can drive Thorchain token value higher to $7.
The streak of lower high formation continues in the RUNE price trend as it crosses below the 50D EMA. Despite the short-lived market recovery phase with the ETF approval news, Thorchain fails to capitalize on the increased market volatility.
With active sellers driving the RUNE price trend, the crucial support levels are under stress warning a crash to lower levels. Nevertheless, 2024 has high anticipations of a bull run in Thorchain, as per our RUNE price prediction.
Source- TradingView
With a bearish engulfing candle forming from the 50D EMA, the RUNE price drops by 10.54% last night. Further, the sharp fall leads to an evening star pattern in the daily chart at the overhead psychological resistance of $5.
The bearish pattern brings Thorchain back to the crucial support of $4.5 and closer to the 50% Fibonacci level. This downfall comes with a bullish reversal possibility with a double bottom pattern as the price takes second support.
Currently, the RUNE coin price trades at $4.53 with the intraday candle teasing a Doji stick. This increases the reversal possibility with a morning star. However, the solid overhead supply may result in a consolidation phase before a decisive breakout.
Technical indicators:
RSI indicator: The daily RSI shows a bullish divergence in the last two dips forming at the $4.5 base. This signals an increased reversal possibility with a double bottom pattern.
EMA: The bullish failure of the 50D EMA to provide dynamic support signals heightened selling pressure. Moreover, the declining 50D EMA warns of a deeper correction.
Will RUNE Price Turn The Tides To Cross $5?
As the overall market suffers the recent tragedy of Bitcoin Spot ETF approval becoming a sell the news event, the altcoins are slowing down. Under such market conditions, the reversal possibilities are limited. However, the technicals in the RUNE price chart support a potential reversal possibility.
Nevertheless, the sideline traders can be cautious and wait for a decisive breakout of the 50D EMA to find a safer entry. In case of a bullish breakout, the RUNE price can reach the $7 mark. On the flip side, a breakdown below $4.3 can drop Thorchain to $3.64.
