The massive sell-off we saw on ThorChain (RUNE) was nothing short of catastrophic, and that’s being nice. The coin has really spiralled downwards, following other crypto assets in decline. But a small mini-rally the last two days could help RUNE break this downtrend. Here are some highlights and analysis of the price action:
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After hitting highs of $17.25 in a superb rally last year, selling pressure has sent RUNE on the floor with a massive decline.
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At press time, the coin was selling at $4.02, nearly over 70% lower from its October highs.
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Despite this, ThorChain (RUNE) has rallied nearly 20% in the last 24 hours as momentum starts to build.
Data Source: Tradingview.com
Can ThorChain (RUNE) break the downtrend?
Even with the 20% 24-hour rally, there is no question that ThorChain (RUNE) remains firmly in the bear market. The coin is trading at $4.02, and if there is going to be a sustained bullish momentum, it must at least test overhead resistance of around $7 in the near term.
Whether this will happen remains highly unlikely. Although we have seen some steady gains in the crypto market over the last few days, there is still a lot of uncertainty.
Any wild price swings could send ThorChain (RUNE) tumbling even further, erasing any hope of a trend reversal in the coming weeks. The good news is that most momentum indicators suggest that ThorChain (RUNE) could get bullish.
Should you buy ThorChain (RUNE)?
At the moment, it’s hard to see any serious demand for ThorChain (RUNE). As risk-off sentiment continues to push investors aware from the trading floor, we do not see enough demand for ThorChain (RUNE) in the near term to push the price that much higher. So, if you are buying for long-term value, well and good. But for short-term traders, this is not the asset to go for.