【THORChain Error Breakout Leads to 9% Price Drop】
RUNE formed a bullish trap after breaking down from a descending wedge, failing to maintain upward momentum and sliding back into the wedge range, negatively impacting holders in the short term.
Analysis shows that RUNE broke above the upper trendline of the descending wedge on October 28, which is typically a bullish signal. However, on October 30, RUNE quickly fell back into the wedge range, creating a bullish trap and resuming the downward trend. The current price is $4.50, down 21% in four days.
The current funding rate is -0.0087%, indicating strong bearish sentiment in the market. The Relative Strength Index (RSI) has dropped to 41.42, suggesting weakened demand and increased selling pressure. If the decline continues, RUNE could drop to $2.53, or even test the support level at $1.32.
If demand rebounds, RUNE is expected to attempt to break above the wedge's upper trendline again, with a target of $6.99.
