Technical Analysis

RUNE technical analysis: Can $7.2 resistance be broken?

Published: Oct 9, 2024

RUNE has bounced off key levels and is eyeing $7.2 resistance. Can it break out? Here’s the technical analysis.

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.

Market context

RUNE is an asset we've been watching closely, especially after the live video session with Abro, where we analyzed the significance of head and shoulder patterns. What we noticed during the live is that both a head and shoulders and an inverted head and shoulders have formed on RUNE.

Since the 20th of May, when RUNE sold off from $7, it has been in a bearish structure. We set a swing low into the $3.3 price point, a swing high around $5, and then another swing low down to $2.5, forming the head of the head and shoulders pattern. The right shoulder formed around the $3.3 price point, which was again well-respected.

From there, RUNE bounced up over 75%, reclaiming key psychological levels at $4.5 and $5. These price points have been significant in previous price action, as seen with the buying pressure back in early March and around April. The fact that we are reclaiming these levels suggests that RUNE may be poised for a sharp move back toward $7.2.

If we break through that level, the next key target will be the highs around $11. Based on what we've discussed in the live session, this head and shoulders pattern represents a potential reversal, offering a key opportunity for a move to the upside.

With bullish momentum expected to return to the markets in November, this could present a strong setup to take advantage of, especially as capital flows increase. RUNE remains part of our C-Pro Picks, as it has strong fundamental utility and a solid community backing it.

6. RUNE weekly chart showing inverse head and shoulders pattern targeting resistance levels at $5 and $7.2

Playbook

Key levels

Support: $3.3
Resistance: $4.5, $5, $7.2
Mid-term target: $11

Trading setup

The $3.3 level has proven to be a key zone for accumulation, with prices bouncing 75% from this region. As RUNE continues to reclaim levels, a move up to $7.2 becomes more likely. Accumulating within the $4.5 and $5 range would position you for potential upside if we break through $7.2, with the next target being the $11 region.

Risk management

The main area to watch is the $3.3 support zone. If this level fails, we'll need to reassess the structure. However, holding above this zone, with a reclaim of $5, provides a clear path toward $7.2 and possibly $11. Any pullbacks into the $4.5-$5 range could present a buying opportunity.

Market sentiment

With strong buying pressure seen around key levels and the potential for capital flow to increase in Q4, RUNE is well-positioned for a bullish reversal. This head and shoulders pattern, combined with the broader market sentiment, sets RUNE up for a potential move to $7.2 and beyond.

7. RUNE weekly chart showing resistance at $7.2 and mid-term target at $11 based on price projection

Cryptonary's take

RUNE is showing strong signs of a potential reversal, with key levels like $3.3, $4.5, and $5 being reclaimed. A breakout above $7.2 would provide confirmation for further upside, with $11 as the next target. The asset is part of our C-Pro Picks due to its strong fundamentals and dedicated community, making this a potential opportunity to capitalize on the upcoming bullish momentum as discussed on the Tom & Asads live.