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THORChain (RUNE) Price Approaches Yearly High – Will It Finally Reach $2?

source-logo  beincrypto.com 27 September 2023 13:48, UTC

THORChain (RUNE) has traded in a range between $1.45 and $1.05 since the beginning of August. More recently, the price reached the top of the range on September 18 but faced rejection.

The RUNE price reached a temporary bottom on September 25 and has increased towards the range high since.

THORChain Trades in the Middle of the Range

The RUNE price has increased since June 14, when it was trading at a low of $0.77. After creating a higher low at the beginning of August, the price accelerated its rate of increase, reaching a new yearly high of $2.03 on August 19.

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Afterward, the price decreased to the $1.45 horizontal support area. The ensuing bounce confirmed the price movement’s limits, creating a range between $1.45 and $1.95.

Such ranges indicate consolidation between the high and the low until the price eventually moves outside these limits. More recently, RUNE was rejected by the range high on September 18 (red icon).

RUNE/USDT Daily Chart. Source: TradingView

The daily RSI provides a bullish outlook. When evaluating market conditions, traders use the RSI as a momentum indicator to determine if a market is overbought or oversold and to decide whether to accumulate or sell an asset.

If the RSI reading is above 50 and the trend is upward, bulls still have an advantage, but if the reading is below 50, the opposite is true. The indicator is above 50 and moving upwards, both signs of a bullish trend.

RUNE Price Prediction: Will Rune Reach $2?

Elliott Wave theory involves the analysis of recurring long-term price patterns and investor psychology to determine the direction of a trend. According to the theory, the RUNE price is in the fifth and final wave of an upward movement that began in June.

The defining characteristic of this increase is the symmetrical triangle pattern in wave four. This is the most common structure in such waves.

If the count is correct, the RUNE price can reach a high near $2.40, 35% above the current price. The target is found by wave four’s 1.61 external Fib retracement (black).

The theory of Fibonacci retracement levels suggests that after a substantial price move in one direction, the price will partially retrace or return to a prior price level before continuing in its original direction.

This principle can be used to determine the peak of potential future upward movements.

RUNE/USDT Daily Chart. Source: TradingView

Despite this bullish RUNE price prediction, a decrease below the September 25 low of $1.65 will invalidate the count.

RUNE could fall by 18% to the closest support at $1.45 in that case.

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