RUNE: A pullback before a resumption of rally seems imminent
Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice
RUNE has climbed past the $6.56 level and could retest the $6-$6.5 area in search of demand on a bullish run toward $10 in the days or weeks to come. The $5 level was broken in early March, and that move north initiated a short-term rally. However, RUNE bulls have shown the stamina to push higher and past $6.5, which meant the market structure had a bullish bias at press time. A pullback could be a buying opportunity.
Source: RUNE/USDT on TradingView
The Volume Profile Visible Range from August to the present day showed that the Point of Control lay at $7.26. At press time, RUNE was trading at $7.49 and had faced rejection at the $8 area. This zone has seen a bearish order block form in recent months.
In mid-December, the daily candle attempted to climb past $8.6 but was rejected, and saw a strong move downward over the next month that reached the lows at $3.5.
Fibonacci retracement levels based on RUNE’s move from $17.27 to $3.25 were plotted (yellow), and at the time of writing RUNE was at an interesting juncture for the bulls. It has tested the $8.61 level as resistance after closing a session above $6.56. Therefore, a retest of the $6-$6.5 area can be used as a buying opportunity.
Source: RUNE/USDT on TradingView
The RSI climbed swiftly into the overbought territory following recent gains. A pullback can not be based simply on the observation that the RSI was in overbought territory, but the confluence of a resistance zone (bearish order block) at $8 and the rejection at 38.6% Fibonacci level lent some credence to the idea of a pullback.
The CMF was in neutral territory after hauling itself
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