THORChain (RUNE) Breaks Above $1.95 Resistance, Reaching a Yearly High of $2.27 on October 1

THORChain (RUNE) Breaks Above $1.95 Resistance, Reaching a Yearly High of $2.27 on October 1

Crypto News – Prior to the breakthrough this weekend, the resistance at $1.95 had held its ground since the year’s onset.

THORChain Surpasses the Range High

The value of RUNE has been on the rise since finding support at the $1.45 horizontal level on September 4 (marked by the green icon). The momentum gained pace on September 11, propelling the price to reach the $1.95 range high by September 18 (indicated by the red icon).

When the price trades within a horizontal range, it consolidates between the highest and lowest points before eventually breaking out of this range.

The direction of the future trend hinges on whether the cryptocurrency surpasses the upper or lower limits of this range.

The daily Relative Strength Index (RSI) paints an optimistic picture. Functioning as a momentum indicator, the RSI aids traders in determining whether a market is overbought or oversold, helping them decide whether to accumulate or sell an asset.

Bulls hold an advantage when the RSI reading exceeds 50 and the trend is upward. Conversely, if the reading is below 50, the advantage shifts. Currently, the indicator stands above 50 and is ascending, both indicative of a bullish trend.

RUNE Price Prediction: Anticipating the Local Peak

The Elliott Wave theory serves as a tool to identify recurring long-term price patterns and investor psychology, assisting traders in forecasting the trend’s trajectory. The prevailing Elliott wave analysis suggests that the RUNE price is in the fifth and final wave of an upward trajectory (depicted in black) that commenced in June.

The surge is characterized by a symmetrical triangle pattern in the fourth wave, a common occurrence in a wave four position.

If this analysis holds true, there exists a possibility for the RUNE price to sustain its upward momentum, potentially reaching the range of $2.40 to $2.70, reflecting a 15% increase from its current value.

This target is derived from the 1.61 external Fibonacci retracement of the fourth wave (depicted in black) and the combined length of the first and third waves (illustrated in white).

The Fibonacci retracement concept posits that following a substantial price shift in a particular direction, the price tends to partially reverse or revert to a previous price level before resuming its original trajectory.

This principle can be applied to project the potential peak of future upward movements.

Despite this optimistic RUNE price projection, a sudden loss of momentum could drive the price back to the $1.95 range, signaling the possible establishment of a local peak.