This Unknown Pattern on RUNE Chart Calls for a Bullish Reversal
THORChain (RUNE) could be headed for a bullish reversal bottom if this very unique chart pattern holds up. Cryptocurrency RUNE is also one of the top-performing coins, with over 21% gains over the past week. Most traders are familiar with the Head and Shoulder pattern, but most aren’t aware of the “crooked” version of the same H&S pattern known as the Quasimodo chart pattern.
Quasimodo Chart Pattern
The RUNE daily chart displays the Quasimodo chart pattern as the price is rising. The key difference between the two patterns is that the left peak of the Quasimodo is much higher than the right peak, and the valleys are also out of sync.
Basically, the price is starting printing higher highs and higher lows, which is a break in the market structure that signals the development of an uptrend.
RSI Momentum
The Relative Strength Index (RSI) oscillator is also holding up above the 50 mid-level, which signals bullish momentum behind the current rally.
Please note that the RSI first broke above the 50 level on February 28, and since then, we have had a successful retest of the mid-level that held. The price also followed with a bounce confirming strong buying activity.
Looking forward: Short-term, the break of key resistance at the $6.00 level can open the door for a retest of $8.40 level, which aligns with the 200-day simple moving average.
