THORChain (RUNE) technical analysis: $4 breakout - 3 key Levels for Bullish accumulation?
Following the last analysis on RUNE, there hasn't been a significant shift in market mechanics. There's no new bias suggesting any headwinds, concerns, or implications that need to be addressed. However, while price action hasn't evolved dramatically, there are still a few key points that deserve our attention.
Market context
Lower highs on the daily time frame formed a bearish trend which has been broken out of as shown by the red bearish trendline.- May 20th/21st: We set a lower high in the ongoing bearish downtrend.
- July 30th: Another lower high was established.
- August 20th: A third lower high formed.
The $4 level, previously resistance, has now turned into a support zone, indicating a positive change in market sentiment as long as we stay above the red trend line that previously served as resistance.
Disclaimer: This is not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results.
Current Playbook
HypothesisRUNE's breakout above $4 suggests a shift in short-term market bias. This development reinforces our confidence in the $3.2 to $4 accumulation zone. Historically, these levels have provided substantial rallies, and with the recent price action, it's becoming more likely that this zone will continue to be a strong foundation for potential market recovery.
Key levels
$3.2: A critical historical support and key accumulation zone. This level has been pivotal in the past, triggering significant bullish surges. $4.00: Previously a resistance level, now a support. Holding above this level could indicate the start of a new upward trend. Risk Management:
Spot accumulation
Continue building a spot position within the $3.2-$4.00 range. This approach avoids the risks associated with leverage, allowing you to weather market swings and hold for long-term gains.
Leverage strategy: If considering leverage, stick to light positions (2x or 3x). Ideally, wait until the price moves closer to the $3.2 level before entering, as this minimizes risk. Place stop losses below $2.553 to protect your position. This strategy assumes that the probability of price dropping to these levels is low, making it a strong setup for those willing to take on additional risk.
Cryptonary's take
Alright guys, there isn't a whole lot new to discuss when it comes to RUNE's market mechanics, but what's important is that it's holding strong around the critical $3.2 to $4.00 accumulation zone.
This level has historically been a launchpad for some serious bullish rallies. The recent breakout above $4 could be a sign that we're shifting from a bearish trend into something more bullish in the short term, which only strengthens our confidence in this key zone.
If you're looking to accumulate, the $3.2 to $4 range is still a solid foundation for long-term gains. And for those considering leverage, stick to light positions (2x or 3x) and manage your risk carefully, especially as we get closer to that $3.2 level.
Even though there's not a ton of new developments, RUNE's current setup looks like a prime opportunity for strategic accumulation as we get ready for what could be a solid market recovery.
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