**THORchain (RUNE) Breaks Out and Reclaims Support at $2**
THORchain (RUNE) recently experienced a breakout, surging from $0.7824 to a high of $2. However, profit-booking slowed down the progress, leading to a correction to $1.37. The renewed interest in cryptocurrencies last week provided the necessary momentum for RUNE to reclaim support at $2 and reach a new high of $2.26.
**Is THORchain Price Ready to Reach $5?**
The breakout over the past two months followed the formation of a falling wedge pattern, signaling a potential reversal. The movement above all three key moving averages stabilized the uptrend and allowed bulls to stay in control. While THORchain is not currently overbought according to the Relative Strength Index (RSI), it may need a catalyst to sustain the uptrend.
Holding the $2 support could encourage investors to focus on potential gains and target levels at $5 and $10. Traders interested in long positions can take advantage of the bullish golden cross pattern on the four-hour chart.
**Support/Resistance at $2 Will Determine Short-Term Direction**
The reaction of THORchain price to support/resistance at $2 will likely determine its short-term direction. If support holds, it could provide a springboard for a breakout targeting key levels at $5 and $10. However, there are seller congestion zones at $2.4, $3, and $4 that may pose challenges.
On the four-hour chart, the Moving Average Convergence Divergence (MACD) suggests a bearish outlook. A sell signal appeared when the blue MACD line crossed below the red signal line. This correction could gain momentum if the MACD continues dropping.
**Claims of Illicit On-Chain Activity Surround THORchain Price Rally**
An analysis by X analyst Tayvano raises concerns about THORchain’s decentralized exchange (DEX). According to Tayvano, over 50% of transfers involving Bitcoin and Ethereum on the DEX were facilitated by stolen funds. Tayvano identified approximately $57 million worth of stolen funds that were converted from Ethereum to Bitcoin on ThorSwap.
These illicit activities accounted for 65% of the total volume on the DEX, and there are concerns that more illegal activities could occur. Some addresses linked to the FTX drain hack were also identified.
**Consider Meme Kombat as a Promising Alternative**
Investors looking for an alternative to THORchain may consider Meme Kombat, a crypto presale project that combines memes and Web3 games. The platform offers various ways to wager bets and will launch with 11 popular meme characters in season 1. Season 2 and future game modes are also in development.
Investors have already channeled over $232k through the presale, out of the expected $1 million. To participate, follow the steps outlined on the official project’s website.
**Hot Take: Consider Alternatives Amidst Challenges**
While THORchain faces challenges due to profit-booking and allegations of illicit activity, investors can explore alternatives like Meme Kombat. The crypto market may experience fluctuations that threaten gains, making it important to diversify portfolios. Meme Kombat offers an innovative gaming platform that combines memes and competitive gameplay, providing unique opportunities for investment.
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