Technical Analysis

ThorChain (RUNE) technical analysis: Is $7 target achievable?

Published: Oct 21, 2024

RUNE tests $5.50 resistance; will it hit $7 next? Explore whether market dynamics and technical indicators suggest further upside in ThorChain’s price action.

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.

Market context

We've been focusing on RUNE, particularly around the key $5 level, where resistance has been shown over the past few weeks. Importantly, we had a breakout on September 23rd, which is worth noting because this is a key resistance that, if we break, could show potential for $7.00 to come into play.

The overall market, especially the majors like BTC & Solana, has been trading well, and Ethereum is pushing key levels, showing bullish momentum across the board.

1. Weekly chart showing RUNE-TetherUS price action with left and right shoulder pattern, resistance levels, and RSI indicator highlighted.

Looking at the Total3 market cap (excluding Bitcoin and Ethereum)

We can see that it's printed with a large head and shoulders, which could suggest the shift now to a more bullish performance in strong ALTs like rune. The liquidity is building up, and it's showing potential strength around $530 million.

The key number here is $600 million, where we've historically seen stronger buying activity. If this strength continues, we could see Total3 push back toward the highs of $780 million seen in March, provided there's enough market support.

2. Weekly chart of crypto market cap excluding BTC and ETH, illustrating head and shoulders pattern, breakout zone, and resistance levels.

Playbook

We'll be keeping an eye on RUNE, particularly around the $5.50 and $5.00 levels, as it establishes a new range. If it can hold and push past this level, we're looking at $7.00 next. Breaking $7.00 would lead to even more upside, with potential targets of $10.00 to $11.00, driven by increased market activity.

Key levels

$5.00 - $5.50 (current resistance range)
$7.00 (next key level)
$10.00 - $11.00 (mid - to longer-term target)

Cryptonary's take

RUNE isn't an asset we're invested in right now, but it's one of our CPRO picks for a reason. The asset saw a massive 1,300% move leading up to May, showing strong demand. With the current market conditions and momentum in the crypto space, this is a strong contender to watch. Accumulating within this range while looking out for future bullish market catalysts could make this a great play moving forward.