RUNE Technical Analysis: Reversal At $1.50 Lights Bullish Hope

The RUNE price action highlights the support trendline fallout rally reversing from the $1.50 psychological mark to end the long-coming downtrend. 10% increase in the last 48 hours projects a high likelihood of a bullish turnaround that may challenge the 50-day EMA.

Key Points:

Source-Tradingview

RUNE Technical Analysis

The RUNE price action shows a 50% drop in market value in the last two months after the support trendline fallout. Additionally, the declining prices reach the bottom support level of $1.50 and generate a resistance trendline.

However, the increase in buying pressure at the psychological mark of $1.5 resulted in a 10% price jump leading to two bullish engulfing candles. And the recovery rally breaks above the new resistance trendline highlighting a breakout entry opportunity. 

Hence the high momentum bullish reversal rally increases the possibility of prices exceeding the 50-day EMA. The breakout rally can result in a price jump to the psychological mark of $2 at the 38.20% Fibonacci level.

Conversely, if RUNE prices reverse to retest the broken resistance trendline, sideline traders can expect a short-term selling opportunity of 10% retracement.

Technical Indicator

The RSI slope spikes in the nearly overbought to cross the 14-day SMA and approaches the halfway line. This reflects an increase in the underlying bullish sentiments adding points to the breakout entry theory. Additionally, the increasing bullish gap between the MACD and signal lines after the recent bullish crossover reflects an increase in buying pressure.

Therefore, the technical indicators show growing demand for Thorchain in the market. As a result, the RUNE technical analysis indicates a bullish breakout of 50-day EMA to challenge the 38.20% Fibonacci level at $2. Hence, the sideline traders can find multiple buying opportunities at the current market price.

Resistance levels- $1.78 and $2

Support levels-  $1.5 and $1.35