- ThorCHAIN price forecast: RUNE is in a downtrend despite fundamental improvements.
- The price is about to break another support level; will it survive?
- What is the price prediction for this year?
No Impact on Bearish price despite strong fundamentals
According to Delphi Digital, despite the positive user traction and strong fundamentals of the ThorCHAIN network, the price of its domestic token, RUNE, has not been reflecting these improvements. The development team is actively working on pushing new features, indicating a commitment to the project’s advancement.
ThorCHAIN is expected to experience substantial growth with over 66k swappers this month, driven by the continuous increase in the number of unique addresses. The organic revenue is also contributing significantly, making up to 44% of node earnings, which has seen a year-over-year growth of 5% from the previous year. This growth in revenue highlights the progress and development of the ThorCHAIN ecosystem.
RUNE‘s previous action and forecasting.
RUNE‘s Previous Price Action
Between March 2021 and May 2022, the coin’s price experienced extreme overvaluation, with highs averaging around $14 and lows averaging around $5. This period was marked by highly volatile cycles in the market. Interestingly, despite these price fluctuations, the 100-day moving average (DMA) remained relatively low at $3.6, significantly below the average pricing during that time.
Following April 2022, the volatile cycle came to an end, and by May, the price was pushed below the support level of the previous cycle and also dropped below the 100 DMA. This bearish trend left little room for the bulls to make significant moves, as the market sentiment was turning negative.
Current Price Action and Prediction
The current situation sees the price in a huge downtrend. The price is way below the 100 and 200 daily moving averages (DMA) and a good reversal is nowhere to be seen as the coin seems to keep breaking support levels.
However, there is one major support below support 2 at the level of $0.390, which is expected to get recognized by the bulls. Immediate support can be seen at the level of $0.779, which is likely to be broken as it has not received confirmations before.
Relative strength index (RSI) is also indicating very weak momentum of the bulls as it stands at the level of 37 which is considered to be undersold.
If the price bounced off support 1, then it is likely to be in consolidation for a while between support 1 and the resistance 1 at $1.72. A less likely possibility is that the coin breaks R1 and if that happens, then there is a second resistance at the level of $1.68.
Although this bullish move is not likely to happen, it is worth keeping an eye out for the possibility. Until the end of 2023, if any strong reversal does not occur, then the price can be expected to keep breaking support levels as it continues moving in a downtrend.
Conclusion
ThorCHAIN’s price is not getting affected, despite the market seeing improvement in the fundamental values. The current situation sees the price in a huge downtrend. The price is way below the 100 and 200 DMAs and a good reversal is nowhere to be seen. A bearish trend can be expected ahead unless a significant reversal occurs.
Technical Levels
Support: $0.779, $0.390
Resistance: $1.72, $1.68
RSI: 37.88
100 DMA : $2.57
200 DMA : $3.11
