The panic selling in the crypto market has resulted in an extended correction in RUNE price. The coin lost its crucial support of $5.7, which majorly supported during December 2021 and early January. The RUNE price has devalued by 40% within a week and now challenges another key support of $3.35.
Key technical points:
- The daily-RSI slopes plummeted to the oversold region
- The intraday trading volume in the RUNE token is $66 Million, indicating a 1.85% hike.
Source- Tradingview
During the first half of January, the RUNE price continued to resonate in a narrow range extending from $8.1 to $5.7. Such consolidation phase represents a short break for price action before they continue their primary trend.
On January 19th, the token price gave a strong fallout from the $5.7 support, providing a selling opportunity for crypto traders. In just five days, the RUNE price lost 40% in value and plunged to the crucial support of $3.4.
The technical chart represents a bearish alignment among the crucial SMAs(20, 50, 100, and 200). These SMA lines could provide strong resistance during a possible bull run.
The daily-Relative Strength index(24) represents a sudden dip to the oversold territory, indicating the sellers might have pushed the token beyond its fair value.
RUNE Sellers Trying To Engulf $3.35 Support
Source-Tradingview
The RUNE/USD pair is currently trading at the $3.2 mark, indicating an intraday loss of 16.31%. The token price has dropped below six-month prior support of $3.35, suggesting the price will continue its downfall.
However, the crypto traders are advised to wait for candle closing below this support to confirm a fallout and a possible sell opportunity to the $2 mark.
The Moving average convergence divergence shows the MACD and signal lines provide a bearish crossover below the neutral zone(0.00), indicating a sell signal.
- Resistance level $4.7, $5.7.
- Support levels-$3.5, $2.1.
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Source: https://coingape.com/markets/thorchain-price-analysis-rune-price-threatens-six-months-low-support-2-next/