THORChain Quietly Outperforms Crypto Market in Q1 – Could RUNE Price Break $10 Next Time?

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THORChain (RUNE) could continue its upward momentum in the coming weeks, even if it moves inside a classic bearish reversal structure.

RUNE price has rebounded strongly by more than 165% four weeks after testing the multi-month horizontal support near $3.15.

In addition, the upward retracement has opened opportunities for an extended bull run towards $11.50, about 45% above the current price level at $7.89, as shown in the chart below.

RUNE/USD weekly price chart with descending triangle setup. Source: TradingView

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

That could make the price of RUNE correct back to $3.15 after reaching $11.50 followed by another downward breakout.

Meanwhile, a long-term bullish setup

Adjusting RUNE’s lower horizontal trendline in the descending triangle arrangement indicates restructuring of the pattern into a symmetrical triangle.

A symmetrical triangle is a continuation pattern, meaning they typically send the price in the direction of the previous trend after a period of consolidation. By doing this, the ideal profit target of the triangle by length equals the maximum distance between the top and bottom trendline.

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

That puts RUNE on its way to between $30 and $80 by 2022, depending on the breakout point.

The foundations of THORChain are skewed towards bulls

The mixed outlook in the THORChain market appears as the entire crypto market is trading under geopolitical and macroeconomic risks. Notably, the market cap of all cryptocurrencies together has fallen by almost 25% year-to-date (YTD).

RUNE has bucked the trend so far and is up close to 9% YTD. Interestingly, the THORChain token has racked up most of its gains in the past 30 days, by over 100% thanks to the hype surrounding the back-to-back feature updates.

For starters, THORChain rolled out “synthetic assets” on March 10, a feature that allows users to trade tokens backed by 50% of their target assets and 50% of RUNE. In addition, the protocol allows traders to exchange the synthetic assets for the real ones at 1:1.

Related: Rune’s impending mainnet launch and Terra (LUNA) integration fueled a 74% rally

Meanwhile, THORChain also has core developer Chad Barraford revealed that he expects the launch of Thorfinance (Thorfi) – a protocol that integrates DeFi tools, such as lending and borrowing, into the THORChain ecosystem – by June 17.

The unveiling also included a proposal to build a native stablecoin called THOR.D, leveraging Terra’s burn-and-mint tactic with its native token LUNA and stablecoin UST.

The bullish updates aimed at RUNE adoption may provide additional support to the mid-term technical price target of close to $11.50.

The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Coin-Crypto.com. Every investment and trading move involves risks, you should do your own research when making a decision.

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