RUNE and NOS offer undervalued opportunities

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.

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RUNE BTC:

Rune BTC presents an interesting divergence. While BTC is 15% down from its all-time high, the Rune BTC pair has breached lower lows, marking what appears to be an extremely undervalued level.

Price action

• On the chart, Rune BTC has printed a double-bottom formation with previous lows marked (orange circles), yet Rune BTC recently stabbed below these levels, signalling further undervaluation.
• This underscores a significant weakness in alts relative to BTC, particularly in Rune BTC's valuation.

Market context

• The broader altcoin market remains a bit sideways and uncertain as capital flows continue to favour BTC. Historically, a falling BTC dominance or further BTC correction often leads to relative strength in pairs like Rune BTC.
• Rune BTC's current state suggests a unique accumulation opportunity, with undervaluation being a key narrative for mid to long-term investors.

RUNE - Market context

RUNE's USD chart respects the accumulation box between $4.50 and $5.00, with the recent low at $4.22 reinforcing this zone as a strong support level. While BTC's 15% retrace has pressured alts, RUNE has maintained its structure, making this range an optimal area for long-term accumulation.

Playbook

Rune BTC accumulation

Evaluate the undervaluation in Rune BTC, particularly after breaching its previous double-bottom lows. This chart is signalling a unique opportunity to accumulate relative to BTC.

RUNE USD strategy

• Spot accumulation: Continue building positions within the $4.50-$5.00 range. Keep stops below the low at the $4.22 level if you want to manage downside risk; it is not really necessary, though.
• Breakout play: Focus remains on a breakout above $7.50. This remains the key bullish confirmation level, supported by strong volume and momentum.

Cryptonary's take

Rune BTC's undervaluation against BTC creates an intriguing narrative for mid-to-long-term investors. The pair has stabbed below previous lows, emphasizing its relative weakness in the current market but also highlighting its immense potential upside once capital flows shift back into alts.

For the USD pair, the buy box at $4.50-$5.00 remains a strong accumulation range, with price action respecting this zone despite some deviations. The $4.22 low is critical, and as long as it holds, the structure remains bullish.

In the near term, our focus remains on careful accumulation within the buy zone while monitoring BTC's influence on the broader market. A breakout above $7.50 remains the trigger for renewed bullish momentum and opens up targets of $8.50-$9.00.

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Nosana (NOS):

Nosana has broken down from our previous buy box, moving into the $2.50 psychological level where the price was caught during the recent bearish sell-off. This level is significant as it reflects strong market support during bearish sentiment, suggesting heavy bidding activity or concentrated buy orders maintaining price.

Key observations

• $2.50 Level Strength: Historically, $2.50 served as resistance in July before breaking higher and has now proven to be supported again. This level aligns with previous sell-off support, making it a key area to monitor.
• $2.00 Level Potential: While $2.50 is holding strong, we are keeping an eye on $2.00 due to its importance as the "scene of the crime" from October 24th-a significant pivot point in price action.

Market dynamics are resetting, which aligns with broader sentiment shifts, and this consolidation is creating a new structure.

Rune BTC’s undervaluation and Nosana’s support near $2.50 highlight accumulation opportunities, while BTC's dominance continues to influence broader altcoin market sentiment.

Playbook

Spot accumulation

• Consider accumulating within the $2.50-$2.00 range, as this zone demonstrates historical significance and current support.
• Monitor for any deviations below $2.00 as potential buying opportunities, but ensure that the structure holds above prior lows.

Breakout opportunity

Look for further confirmation of the inverted head-and-shoulders pattern on higher timeframes, which could signify a shift in sentiment and potential bullish continuation.

Cryptonary's take

Nosana's retracement to $2.50 is not overly negative. The market appears to be in a reset phase, consolidating after the 200% move from $1.50 to $4.50. The strong support at $2.50, combined with the possibility of a deeper test toward $2.00, presents a decent buy zone.

The inverted head-and-shoulders pattern forming suggests a potential sentiment shift, which could align with a broader market recovery. For now, the focus is on monitoring the $2.50-$2.00 range and watching for signs of renewed bullish momentum.

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