RUNE Technical Analysis: Dynamic Oppressor 50-SMA Fuels Downtrend

Key technical points: 

Past Performance of RUNE

The RUNE price action shows a downward trend after failing to surpass the supply zone at the $4 mark. The bullish failure leads to a downward trend under the influence of a resistance trendline and accounts for a 60% drop to $1.5. However, we can see a bullish retracement challenging the resistance trendline. But the confluence of the resistance trendline and the 50-day SMA results in another bullish failure.

Source- Tradingview

RUNE Technical Analysis 

The RUNE price drops by 5% today and teases a double-top formation at $2.4, potentially leading to a 30% drop to test the $1.50 support level. Hence traders looking for selling opportunities can find multiple entry points at the current market price. The vertex indicator shows the VI lines ready for a bearish crossover indicating a trend reversal in the technical chat. Therefore, the technical indicator supports the idea of a double-top formation leading to a bearish retracement.

The stochastic RSI indicator shows the K and D lines failing to sustain in the overbought territory leading to a bearish crossover and cracks under the overbought boundary, representing a new bear cycle. In a nutshell, the RUNE technical analysis forecasts a high likelihood of a bearish continuation to the $1.50 support level.

Upcoming Trend 

If the sellers maintain a downward trend, the RUNE prices will succumb under the psychological mark of $2 to test the $1.50 support level accounting for 30%.

Resistance Levels: $2.40 and $3.50

Support Levels: $2 and $1.50