THORChain Price: Caution as RUNE Forms a Head & Shoulders Pattern
The THORChain price had a relatively mixed performance in November. Initially, the RUNE price jumped to a high of $17.2 in November. It then crashed by about 46% and reached a monthly low of $9.25. This was its lowest level since October 21. So, what next in December?
What is THORChain?
THORChain is a decentralized liquidity protocol that allows people to deposit native tokens and earn returns. It is built using Cosmos SDK and acts as a cross-chain DEX. The platform uses an automated market maker (AMM) model that enables people to move assets across different chains.
RUNE is the native token for the ecosystem. It has five key features including security, governance, incentives, amplifier, and liquidity.
The THORChain price struggled in November. This was in line with other coins like Bitcoin and Ethereum that declined sharply during the month. This price action happened as a rotation happened to metaverse cryptocurrencies. Some of the top cryptocurrencies in November were all in the gaming and metaverse industry like Sandbox, Decentraland, and Gala.
THORChain price prediction
Turning to the four-hour chart, we see that the RUNE price is attempting to bounce back. It has already risen by about 23% from its lowest level in November this year. Also, it has crossed the 25-period and 15-period moving averages. Most importantly, the coin has moved above the ascending trendline that is shown in blue.
However, a closer look shows that the coin has formed a head and shoulders pattern. In price action, this pattern is usually a bearish sign. Therefore, while the Santa rally will likely push it higher, we can’t rule out a situation where the coin makes a major drop in December. If this happens, the next point to watch will be at around $8.50.