RUNE analysis: Price levels to watch as momentum shifts

• The breakdown from the up channel and failure to sustain the above key EMAs suggested that the bears are currently in control. 
• Traders should watch for a close above the 20-day and 50-day EMAs to confirm a potential bullish reversal.

RUNE saw a substantial recovery after rebounding from the $2.9 support level. However, this recovery was short-lived as the price failed to sustain above the 20-day and 50-day Exponential Moving Averages (EMAs).

This failure has led to a breakdown from the recent up-channel, causing a series of red candles that pulled the price below the $3.89 resistance.

At the time of writing, RUNE traded at approximately $3.86, slightly up by around 1.4% in the last 24 hours. The price action suggested that the altcoin is struggling to maintain its momentum, with the 20-day EMA ($3.96) and 50-day EMA ($4.01) acting as significant resistance levels.

Thorchain bulls provoked a break above trendline resistance

Source: TradingView, RUNE/USDT

The daily chart revealed RUNE had flipped its long-term trendline resistance into support. If the price manages to close above the 20-day and 50-day EMAs, this could potentially act as a strong foundation for a bullish reversal.

However, the recent breakdown from the up channel raises concerns about more downside risks.

The key levels to watch are resistance at $4.01 (50-day EMA) and $4.68 (200-day EMA) and support levels at $3.50 and $3.32.

Failure to hold the $3.5 support level could lead to a rather extended downtrend. In this case, the sellers would look to retest the lower support zones around $3.32 and $2.91.

On the other hand, a successful close above the 50-day EMA could pave the way for a retest of the $4.68 level and potentially higher if bullish momentum picks up.

The Relative Strength Index (RSI) currently hovered around 47.67, indicating a neutral sentiment in the market. However, the RSI was on a downtrend and suggested that the bearish momentum might continue unless there is a strong reversal.

Derivates data revealed THIS

Source: Coinglass

In the derivatives market, the long/short ratio on Binance is 0.5992, indicating more short positions than long ones. This further supports the bearish sentiment.

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However, it’s worth noting that the open interest was relatively unchanged (+0.26%), suggesting that traders were cautious and waiting for a clear direction.

As always, it is crucial to monitor Bitcoin’s movement and the overall market sentiment, as this will likely influence RUNE’s price action.