- THORChain fell below the demand zone of $4.5 last month.
- The quick recovery showed that sellers are not dominant.
THORChain (RUNE) is up 17.15% in 24 hours and bullish belief has swept the cryptocurrency world after Bitcoin (BTC) reached an all-time high of $75.4,000 against the US dollar.
Monday’s volatility prompted a strong bearish reaction from the markets, but bulls quickly calmed fears of a bearish reversal.
The price has risen above the $4.76 level, which is a good sign in the short term, but can an uptrend build from this?
THORChain’s bear market structure collapses
Source: RUNE/USDT on TradingView
On the daily time frame, RUNE has been trending steadily upward after sharp losses in August. This trend and bullish market structure maintained until November 4th.
Bitcoin (BTC) experienced some turmoil, falling to $66.8,000 after already being rejected from $73.6,000 six days ago.
This rejection led to strong selling pressure on RUNE, which took the price from $6.3 to $4.22 in less than a week from the June bearish order block.
It recorded a decline of 33.3%, turning the market structure into a bearish one.
What is more worrying is that the support base THORChain built over the past month in the $4.5 region has been breached. A mitigating factor is that the OBV is confined within a small range.
This signaled that RUNE was more likely to trade within $4.5-$6.3 as long as OBV remained within the stated range.
Additional clues about range formation
Source: Coinglass
The liquidation heatmap shows that the cluster of liquidity that had built up around $4.5 was swept away during the recent downturn.
The sharp rebound in the area was a sign that the move was likely driven by liquidity rather than high sales in the spot market.
Read THORChain (RUNE) Price Prediction for 2024-25
At this time, there was no clear liquidity pool to attract RUNE. The $5.8-$6.2 region has captured interest and may push the price higher, but not immediately.
It seemed more likely that RUNE would consolidate below $6, accumulate short-term liquidation, and then move higher and hunt it.
Disclaimer: The information presented does not constitute financial, investment, trading, or any other type of advice and is solely the opinion of the author.