Crypto nugget: RUNE will operate a trend reversal?

In this new Wednesday crypto nugget, we are going to look at a cryptocurrency that we have not had the opportunity to deal with in this column: the RUNE. The goal, as each of the previous analyzesis to identify the key levels to watch on the asset and the bias to have for the next few weeks, more precisely for this end of the year 2022 as well as the first weeks of January 2023. Without further ado, let’s go to TradingView to build our RUNE analysis.

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What is the RUNE trend on a weekly scale?

Price of RUNE against the dollar on a weekly scale (1W)
Price of RUNE against the dollar on a weekly scale (1W)

First of all, we can see the evolution of the price of RUNE during the year 2021 by staying above a technical level at $3,012 while registering increasingly weak tops, which testified to the gaining strength of the sellers. When the asset broke this technical level, a new bearish leg took place on the asset before building support, not shown on the chart, at $1.37/$1.40.

RUNE is currently being rejected on this price zone which is in confluence with the EMA13 which has never been resumed for several months. With the red circles, you can see the many times when the uptrend faltered, giving the opportunity for the sellers to take over.

From now on, in addition to the need to resume this technical confluence by closing above the 1.50ddollar, it will be necessary to monitor the reaction of the price on the technical level below 1/1.05 dollar. Former resistance at the end of 2020, this level makes it possible to retain, for the moment, the fall of RUNE. If the asset breaks this support downwards, it could register a new downward momentum with a return, at a minimum, to $0.65.

What are the levels to monitor on the daily scale?

SAND price against the dollar on a daily scale (1D)
SAND price against the dollar on a daily scale (1D)

To complete this analysis, we can look at the evolution of the asset on a smaller time scale. Currently, the RUNE has returned to the Value Area Low and looks set to break free from the EMA trio. In this context, we can envisage during the next few days a return on the MA100 where the asset was rejected a few days ago. If the RUNE does not manage to overcome it, it will continue to preserve its downward trend. However, if it breaks up, what are the levels to watch over the next few weeks?

  • The first High Volume Node at $1.55/$1.59;
  • A resistance at $1.8;
  • the Point Of Control at $1.95, this is the level at which the volumes traded were the highest;
  • A second High Volume Node which sits at $2.15 as well as the EMA200 which sits just above it at $2.30.

These technical levels are relevant and can be reached little by little in the case of a real trend reversal on a weekly scale. Thus, a resumption of the first daily High Volume Node in confluence with the weekly EMA13 will be the sign of a strong hold of buyers on the asset.

Here we are at the end of this analysis of RUNE which, at present, is in a downtrend on a weekly scale. However, on the daily time frame, the asset seems determined to return to its first High Volume Node at $1.55. This is the level to watch to hope for some buying momentum. However, the current context leads the markets to be calmer at the end of 2022, which could leave investors waiting until 2023.

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