RUNE Technical Analysis: Breakout Rally Vs. Death Cross

Key technical points:

Past Performance of RUNE

RUNE prices have been stuck in a correction phase since last month under the influence of the resistance trendline. During the 50% downfall, even the supporting EMAs failed to sustain the selling pressure resulting in a fall to the $6 support zone. Finally, however, the overnight 20% surge completes the double bottom formation and breaks above the resistance trendline.

Source-Tradingview

RUNE Technical Analysis 

RUNE price action finds bullish commitment as the trading surges to support the price jump, adding extra credibility to the breakout rally. Moreover, the ongoing retest phase faces a volume crunch increasing the chances of a bullish reversal. 

The crucial daily EMAs maintain a flat trend, but the bearish influence is evident as it opposes the bullish follow-through candle. Moreover, the death cross possibility increases as the 50-day EMA shows a bearish spike down.

The MACD and signal lines give a bullish crossover in the negative territory reflecting a trend reversal and marking the start of a bull cycle. 

The RSI value reaches the halfway line and crosses above the 14-day SMA, reflecting a surge in the underlying bullishness. However, the RSI values sustaining in the nearly overbought zone will add extra points to the bullish trend.

In a nutshell, RUNE technical analysis shows a high likelihood of a bull trend above the $8 mark.

Upcoming Trend 

RUNE market price experiences a surge in the underlying bullishness as the breakout rally shows a retest with a volume crunch. Hence, traders can find bullish entry opportunities with the start of lower price rejection or closing above the $8 mark in the 4-hour timeframe.

Support Levels: $6 and $5

Resistance Levels: $8 and $10