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Market Direction

RUNE breaks out, but mechanics still overheated

Updated: Nov 20, 2024
Published: Dec 4, 2023
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RUNE has performed well, having been able to break out above the $6.50 horizontal resistance and now also to pull back and retest it as support.

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The mechanics have reset slightly, having been overheated yesterday with OI at yearly highs.

With market mechanics overcooked and longtime resistance morphing into crucial foundations, the bulls are walking a tightrope.

TLDR

  • RUNE broke above the key $6.50 resistance level and retested it as support.
  • Market mechanics overheated with high open interest and funding rates.
  • RUNE needs to hold $6.50 support; otherwise, $5.80 is the next likely level.
  • There are no clear DCA opportunities yet unless there is a deeper pullback to the $4.00-$4.80 zone.
Disclaimer: Not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results. “One Glance” by Cryptonary sometimes uses the RR trading tool to help you quickly understand our analysis. They are not signals, and they are not financial advice.
RUNE 12hr
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Technical analysis

  • RUNE has pushed above its main horizontal resistance of $6.50 and has now moved back to retest that level as support. 
  • RUNE remains in its main uptrend, and bullish momentum should continue. 
  • If the $6.50 level is lost, then price will likely find new support around the converging levels of $5.80 and the uptrend line. 

Market mechanics

  • Open Interest had increased to new yearly highs of $133M but has now decreased slightly to $120m. 
  • The OI-Weighted Funding Rate ramped up majorly in the early hours of this morning but has since come down slightly to 0.0350%, having been at 0.0630%. Ultimately, this is still high and suggests that Longs are relatively overweight here. 
  • Longs may become vulnerable to a squeeze if the Funding Rate becomes more positive again. If $6.50 is lost, this could drive the squeeze on the Longs. 

Cryptonary’s take

We still like RUNE here, even though the mechanics are somewhat overheated. It is important for RUNE to hold the $6.50 area; otherwise, $5.80 is likely. 

Regarding DCA levels for RUNE, we would want to see a far deeper pullback to continue adding to our long-term bags. This level would likely be between $4.00 and $4.80. But there are no guarantees we get given this level. 

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