RUNE Is Turning Bullish

THORChain's platform-native cryptocurrency, RUNE, has been exhibiting bullish behavior for more than a week, registering higher highs and dropping to lower lows throughout its year-long ascent.

Growing my a mere 6% in 2024, RUNE's price has more than doubled from January to March of this year, and its recent price drop likely presents an optimal opportunity for purchase.

Daily time frame analysis

RUNEUSDT - 1 Day Time Frame

RUNE faces multiple resistance points that it needs to overcome, and its future price action largely depends on Bitcoin's performance. If Bitcoin consolidates and breaks out, RUNE may initially lag but is likely to follow as it did in March.

Conversely, there is a strong possibility for RUNE to revisit its marked strong support level. Recently, RUNE tested the 200-day moving average (MA) and is currently in the process of reclaiming it. This chart pattern is similar to many other altcoins that have experienced significant downturns and are now trading at prices seen at the beginning of the bull market in November, or even lower.

Viable entry points could include a retest of the support or when RUNE reclaims the marked pivot. Without these movements, the price is likely to oscillate between the support and the pivot for weeks or even months, especially since DeFi is not as dominant in this year's narrative compared to AI.

Hourly time frame insights

RUNEUSDT - 1 Hour Time Frame

RUNE is attempting to reclaim the low timeframe (TF) resistance at the round number of $6. If successful, this could set up the price to use $6 as its new support, potentially ranging below the pivot until it is reclaimed.

There is also a noticeable uptrend on the 4-hour chart. If this uptrend is lost, then $6 could become a resistance level for some time, and we might see the price address the inefficiency, possibly dropping to another round number, $5, which acted as support in February.

Another even stronger support is the marked green area, which also represents solid entry points.

RUNE's future outlook

Despite the unappealing chart, RUNE's future success should not be underestimated, given its position as the second-largest in market cap among swap platforms and its status as the most utilized decentralized protocol for asset swapping.

THORChain's significant role in DeFi, particularly because it allows for direct swaps of assets like real ETH for real BTC (not wrapped), sets a critical milestone.

By integrating BTC into DeFi without wrapping, THORChain's cross-chain infrastructure is well-positioned for growth, which bodes well for its native token, RUNE.