THORChain moves higher amid sellers losing steam in the short-term trend

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THORChain jumps 7.04% to $0.456

Highlights

RUNE remains under persistent selling pressure, as price action is capped below critical moving average resistance levels.
Momentum indicators support a bearish outlook, but several oscillators indicate the market is oversold, suggesting possible short-term rebounds.
RUNE is likely to trade within a $0.420 to $0.500 range over the next week, with a downside break favoring further declines.

Bearish momentum persists amid oversold conditions

On the technical front, RUNE is trading below the SMA-20 ($0.5199), SMA-50 ($0.4739), and SMA-200 ($0.5254). The Ichimoku Kijun at $0.5235 establishes immediate resistance above the current market. Momentum indicators, including MACD and ADX, both confirm a bearish structure, with BBP showing intraday seller dominance. Oscillators such as RSI (40.08), CCI (–85.87), and Stoch RSI (11.6) highlight mild to strong oversold conditions, suggesting the market may be stretched to the downside. The Awesome Oscillator remains negative, reinforcing the prevailing weak setup. Divergence between oversold readings and persistent bearish momentum could signal potential for a technical bounce, but risks remain skewed lower.

Downside favored as volatility and resistance cap upside

Over the next five trading days, RUNE is likely to remain within a typical volatility band between $0.420 and $0.500. The probability of a price increase remains low (less than 20%), indicating that further downside is the more probable scenario. Baseline expectations call for sideways price action within this corridor. A bullish reversal would depend on a breakout above the $0.524 resistance area, while a drop below $0.420 could trigger a bearish extension given ongoing weak momentum.

Anton Kharitonov, expert at Traders Union, sees RUNE’s weak technical setup as a reason for continued caution. The price remains below key moving averages and momentum remains bearish. Absence of news flow adds no support for a potential reversal. "Until RUNE breaks above $0.524, my outlook stays defensive and I expect sideways to lower prices."

Earlier, analysts noted that THORChain continued to exhibit pronounced bearish momentum and volatility in the aftermath of a protocol exploit. The latest data reinforces this view by highlighting persistent downside risk and volatility, making the $0.420 support area a critical level for traders to monitor in the near term.

Source of Data: RUNE Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.