Disclaimer: The information presented does not constitute financial, investment, trading or other type of advice and is solely the opinion of the writer.

RUNE saw a convincing reversal from the 23.6% Fibonacci level over the past day. The buyers tended to cross the line of the EMA ribbons. But the bears had yet to let go of their long-term advantage.

Meanwhile, the friction between the buyers and sellers at the Point of Control (POC, red) may persist as the market structure is redefined. At the time of writing, RUNE was trading at USD 2,576, down 11.69% in the past 24 hours.

RUNE daily chart

Source: TradingView, RUNE/USDT

RUNE has been weakening on the chart since early April. After witnessing several strong rallies, sellers continued to find newer lows in the past month.

RUNE lost nearly 90% of its value as of April 1 and plunged to its 17-month low on June 18. But the ongoing sell-off situation eventually caused a cooling near the $1.4 zone. As a result, the alt has seen an up-channel (white) in recent weeks.

This up-channel trajectory could now see a slowdown near the 23.6% Fibonacci level in the $2.9 zone. An inability of the buyers to apply a bullish crossover to the EMA ribbons could further hinder revival efforts.

Any closure below the ribbons could extend the sustained slow phase near the POC. Any break below the pattern could pull RUNE towards the $1.4-$1.6 range before a plausible recovery. Any bearish void could see a ceiling near the $3.4 mark. However, traders will have to wait for a close above the 23.6% level for this purpose.

rode

Source: TradingView, RUNE/USDT

The Relative Strength Index (RSI) continued its dominance in the bullish region while ensuring its up-channel structure. Any reversal of this pattern could trigger a short-term pullback on RUNE’s charts. This reading implied that potential losses were possible before the bulls regained their upward tendencies.

Additionally, the lower On-Balance Volume (OBV) spikes in recent weeks have reinforced the likelihood of a strong bearish divergence with price. Despite the bullish edge, sellers could be playing a bummer if the OBV continues its journey south. Nevertheless, the ADX showed a weak directional trend for the alt.

Conclusion

Given the immediate hurdle of 23.6% coupled with the rising channel pattern, RUNE could see a pullback in the near term. Should the EMA ribbons make a bullish flip in the daily timeframe, the long-term trends could favor the bulls. The objectives would remain the same as discussed.

Finally, investors/traders should keep a close eye on Bitcoin’s movement and influence the overall perception of the market.



This post RUNE investors can take advantage of the already pattern break by taking this position

was published first on https://ambcrypto.com/rune-investors-can-leverage-the-alts-patterns-break-by-taking-this-position/

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