THORChain is fast approaching its mainnet release!
So why is RUNE/USD showing wicks on the daily time frame?
Here’s a setup that I’m looking at:
RUNE/USD: Daily
A recent update from the devs of cross-chain liquidity protocol THORChain (RUNE) shared that trading volume had hit an all-time high in the last couple of weeks.
More importantly, there are only two milestones needed for a Mainnet launch.
Once these points are achieved and the network sees stable operations for 30 days, then a lot more users can have access to the protocol.
The hype around the development has pushed RUNE/USD to the $12 zone. For reference, price was only at $3 earlier this month!
Unless we see more updates, though, it’s likely that we’ll see some profit-taking.
For one thing, RUNE/USD is popping up long wicks around its current levels. It doesn’t help that $12 lines up with a trend line resistance that’s been limiting RUNE’s gains since mid-2021. Last but not least is the small bearish divergence on the daily time frame.
Watch how RUNE/USD reacts to the $12 levels. If it looks like price will get rejected at the trend line resistance, then you can start pricing in a continuation of RUNE/USD’s downtrend.
But if the updates continue to roll, or if RUNE bulls manage to bust through the $12 resistance area, then RUNE/USD could revisit its previous highs near $17 or even $21.
Good luck and good trading this one!
