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Technical Analysis

DOGE and RUNE show strength amid bullish momentum

Updated: Nov 20, 2024
Published: Nov 8, 2024
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DOGE and RUNE continue to push higher, with DOGE solidifying support at $0.13 and RUNE reclaiming the $5 zone. Both assets offer exciting setups as bullish momentum gains traction.

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Disclaimer: This is not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results.


DOGE:

Market context

Following up on our previous Doge analysis, we've seen a strong price action sequence unfold. Initially, we highlighted $0.13 as a critical breakout and retest zone, which has played out as expected. Doge initially faced resistance at $0.13 in late September and mid-October, but the breakout on October 26th turned this level into solid support. This shift shows that sellers previously active around $0.13 have exited, allowing buyers to take control. The breakout has already delivered a 40% move, reaching $0.175.

We're seeing signs of profit-taking and minor exhaustion, but if Doge manages to establish $0.175 as new support, it sets the stage to target the next key level of $0.229. Doge is one of the few assets from the last cycle that has surpassed its March-April 2022 sell-off zone, showing its strength. This price action marks a higher high and higher low structure that suggests a sustained bullish shift as we approach $0.229.

1. Daily chart showing Dogecoin (DOGE) with key levels marked, indicating a potential continuation above the 0.175 support.

Playbook

Monitor Doge around the $0.175 level. A retest here could confirm support, offering a strong entry signal for targeting the $0.229 level.
  • Spot accumulation: Accumulate spot positions if Doge confirms $0.175 as support. Waiting for the retest at $0.13 could also offer a lower entry for a longer-term position.
  • Positioning strategy: Avoid adding positions around $0.15 without a confirmed breakout at $0.175, as there's potential for a retrace. If $0.175 holds, targeting $0.229 with additional spot accumulation makes sense.
  • Profit-taking: If Doge approaches $0.229, assess for profit-taking opportunities, as this is a significant resistance level.

Key levels

  • $0.175 - Established support and potential re-entry level.
  • $0.229 - Short-term target; a breakout level that could signal sustained bullish momentum.

Risk management

Doge has shown solid demand, but careful positioning is still critical. Bitcoin's price action above the $70k range may influence Doge's next moves, so it's essential to monitor BTC. For now, spot positions are favoured, as Doge is showing strength.

Cryptonary's take

Doge's performance has been strong, confirming our analysis around the $0.13 breakout. While Doge isn't part of our core holdings, it's shaping up to be a strong contender this cycle with the Trum & Elon duo narrative and Elons past support of Doge. naturally, people will look to bid on this narrative.

If momentum holds, particularly with BTC's influence, Doge could revisit levels like $0.175 and potentially hit $0.229. Spot accumulation at support levels is sensible, while patience with leverage is key to avoiding premature entries in volatile conditions. Remember what we taught about overheated mechanics in our live video a few weeks back? We must be cautious about increasing exposure when things get hot.


RUNE:

Market context

In our last analysis, we noted the importance of the $5 level as a buy zone for RUNE. Recently, we observed classic market manipulation as RUNE dipped just below its support at $4.5, sweeping liquidity before quickly rebounding with a 30% rally over two days.

This is a textbook example of manipulation- a move designed to shake out weak hands, capture liquidity, and set up a reversal. Seeing volume kick in after the dip confirms this pattern, and it serves as a valuable lesson in how the market often retests key levels, deceives participants, and then changes direction.

RUNE has since reclaimed its spot in the buy box between $5 and $5.5, maintaining a higher high, higher low structure since breaking out of the downtrend from May to September. With the broader market showing strength in price discovery above $76k, Solana above $200, and Ethereum approaching $3,000-the, the overall sentiment is heating up, setting the stage for further upside in RUNE.

2. RUNE-TetherUS chart depicting a buy zone between 5 and 5.5, highlighting support and resistance levels for traders.

We're also watching Total3, which has now moved off a rounded bottom at $600 billion and is targeting $800 billion, signalling strong momentum across high-cap alts like RUNE.

3. Total3 market cap chart showcasing a rounded bottom formation and projected 30 rally potential to the 800 billion level.

Playbook

Objective: Focus on accumulating RUNE within the $5-$5.5 buy box, leveraging the recent pullback as an accumulation opportunity.
  • Spot accumulation Zone: Add spot positions between $5.0 and $5.5, using any retests within this range to build a position.
  • Breakout target: If RUNE breaks past $5.5 with conviction, we're looking for a move toward $7 as the next target, where we can reassess positioning for potential upside to $10-$11.
  • Risk management: With manipulation at the $4.5 level, use a stop-loss just below this mark to manage the downside.

Key levels

• $5.0 - $5.5: Buy box and key support range • $7.0: Primary breakout target for continuation • $10.0 - $11.0: Longer-term target based on broader market strength

Educational insight: Spotting manipulation and liquidity sweeps

The recent price action in RUNE is an excellent example of how manipulation plays out around key levels. When the price dips below strong support like $4.5 only to bounce back with strong volume, it's often a liquidity sweep- a move designed to pull in short-sellers and stop out longs before reversing. Recognizing these moves can save traders from getting trapped on the wrong side of the market. When key levels are broken briefly and recover quickly, it often signals the smart money stepping in.

Cryptonary's take

RUNE has shown resilience and strength, aligning with broader market momentum. While not in our core holdings its in our cpro picks for a reason, its performance around these buy levels and manipulation zones offers an intriguing setup. If the market momentum continues, RUNE's strong community and prior performance indicate it could rally alongside high-cap alts. Spot accumulation within our buy box provides a well-timed entry, while patience and careful positioning allow us to take advantage of any further bullish catalysts.


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