THORChain (RUNE) Faces Strong Bearish Pressure Amid Market Uncertainty

• RUNE’s price fell 48% after losing support, signaling bearish momentum as trendlines and EMA50 failed.
• Fibonacci retracement zones provided initial support, but repeated tests led to a breakdown, heightening bearish sentiment.
• Recovery depends on reclaiming critical Fibonacci levels and EMA50, with further declines likely if RUNE fails to rebound.

THORChain (RUNE) has experienced a decline following a critical technical breakdown. The asset, which had shown t strength, now faces immense bearish pressure. A crucial trendline, which once acted as resistance, became support before ultimately failing. As a result, RUNE plunged below key Fibonacci levels and its 50-week exponential moving average (EMA50). The situation mirrors the collapse of projects like LUNA, raising concerns among investors.

RUNE’s Rally and Breakdown

Previously, RUNE demonstrated impressive growth after breaking past a descending trendline. This breakout led to a 141.52% surge, reaching approximately 4.467 USDT. However, the rally was short-lived. The price faced resistance at the 0.786 Fibonacci retracement level, leading to a reversal. Once RUNE lost support at the trendline and EMA50, bearish momentum accelerated. Consequently, the price plummeted to 1.301 USDT, marking a steep 48.33% decline.

Additionally, a key Fibonacci retracement zone between the 0.618 and 0.786 levels initially provided strong support. However, repeated tests weakened the zone, ultimately resulting in a breakdown. A retest of the broken trendline failed, confirming resistance and further reinforcing bearish sentiment.

Future Projections and Key Levels

According to analyst CryptoBullet1, RUNE must reclaim critical Fibonacci levels to confirm any potential reversal. The 50-week EMA also remains an essential indicator for gauging market strength. If RUNE fails to recover above these levels, further downside is likely.

Moreover, Fibonacci extensions provide insight into potential bullish targets. The 1.618 extension suggests a price target of 34.000 USDT, while the 2.618 extension is a potential bull market peak at 54.000 USDT. However, with the current bearish momentum, these targets remain speculative unless market conditions improve.

Market Sentiment and Final Thoughts

The breakdown of RUNE’s bullish structure has dampened investor confidence. Market participants must exercise caution and monitor critical support levels. Furthermore, diversification remains essential in mitigating risks associated with volatile assets.

RUNE’s current trajectory suggests continued bearish pressure unless a strong recovery occurs. The market’s next moves will be crucial in determining whether RUNE can reclaim lost ground or if further declines await. Investors should remain vigilant and consider both technical and fundamental factors before making decisions.