THORChain quietly outperforms crypto market in Q1 — Can RUNE price break $10 next?

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THORChain (RUNE) may proceed its upward momentum within the coming weeks even because it treads inside a traditional bearish reversal construction.

RUNE’s value has rebounded strongly by over 165% 4 weeks after testing its multi-month horizontal stage help close to $3.15.

What’s extra, its upside retracement has opened up prospects about an prolonged bull run towards $11.50, about 45% above the present value stage close to $7.89, as proven within the chart under.

RUNE/USD weekly value chart that includes descending triangle setup. Supply: TradingView

The $11.50-level coincides with RUNE’s multi-month falling trendline resistance, forming a descending triangle, a bearish setup, in conjunction with the lower horizontal support.

That could have RUNE’s price correct again to $3.15 after reaching $11.50, followed by another breakout to the downside.

A long-term bullish setup, meanwhile

Adjusting RUNE’s lower horizontal trendline in the descending triangle setup hints at restructuring the pattern into a symmetrical triangle.

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A symmetrical triangle is a continuation pattern, meaning they typically send the price in the direction of its previous trend after a period of consolidation. In doing so, the triangle’s ideal profit target comes to be at length equal to the maximum distance between its upper and lower trendline.

RUNE/USD weekly price chart featuring ‘symmetrical triangle’ setup. Source: TradingView

That puts RUNE en route to between $30 and $80 in 2022, depending on its breakout point.

THORChain’s fundamentals skewed towards bulls

The mixed outlook in the THORChain market appears as the entire crypto market trades under geopolitical and macroeconomic risks. Notably, the market capitalization of all the cryptocurrencies combined has fallen by nearly 25% year-to-date (YTD). 

RUNE has so far bucked the trend, rising nearly 9% YTD. Interestingly, the THORChain token has secured most of its gains in the past 30 days, gaining over 100% owing to the hype surrounding its back-to-back feature updates.

For starters, THORChain rolled out “synthetic assets” on March 10,  a function that allows customers to commerce tokens backed by 50% of their goal belongings and 50% of RUNE. As well as, the protocol permits merchants to redeem the artificial belongings for the true ones at 1:1.

Associated: Rune’s upcoming mainnet launch and Terra (LUNA) integration set off a 74% rally

In the meantime, THORChain core developer Chad Barraford additionally revealed that he expects the launch of Thorfinance (Thorfi) — a protocol integrating DeFi instruments, similar to lending and borrowing, into the THORChain ecosystem — by June 17.

The revelation additionally included a proposal to construct a local stablecoin referred to as THOR.D, using Terra’s burn-and-mint tactic featuring its native token LUNA and stablecoin UST.

The optimistic updates specializing in RUNE’s adoption may present extra tailwinds to its interim technical value goal close to $11.50. 

The views and opinions expressed listed here are solely these of the writer and don’t essentially mirror the views of Cointelegraph.com. Each funding and buying and selling transfer entails danger, you must conduct your individual analysis when making a call.