$RUNE

RUNE/USDT Price Movement

Based on the weekly chart (1W) of the RUNE/USDT pair from the Binance platform, it can be seen that the current price is at the level of $2,125, showing a slight increase of 1.24% in the past week. Technical analysis of the chart includes indicators that provide an overview of price volatility and trends.

  1. Key Support and Resistance

    • Strong Support: Price has approached a strong support line around the $2.00 level. This is an area where buying pressure increased previously, as seen in the previous candlestick.

    • Resistance: The nearest resistance is seen in the range of $4.00 - $4.50, which was previously a price consolidation area.

  2. Volatility Indicator

    • The Kepri-Band lines are widening, indicating increased market volatility. The current price is at the lower end of the bands, indicating a possible oversold or significant selling pressure.

    • If there is a bounce from this level, there is potential for a rebound towards the middle of the Kepri-Band around $3.00.

  3. Long Term Trend
    Strong bearish candlesticks have been dominating, indicating strong selling pressure. However, the relatively high volume in the support area could be a sign of accumulation, especially if supported by positive fundamentals.

RUNE Network Maintenance Issues

Recently, the ThorChain network (which underlies the RUNE token) underwent maintenance to improve network stability and performance. This resulted in a temporary suspension of on-chain transactions. Here is how it affected the RUNE price:

  1. On-Chain Transaction Termination
    Suspension of transactions may temporarily reduce liquidity, thereby creating selling pressure in the spot market as users may seek liquidity on other platforms.

  2. Market Sentiment
    Maintenance that is not explained in detail or takes longer than scheduled usually affects investor confidence. This can worsen the sell-off if market participants see a lack of transparency.

  3. Recovery Potential
    If the maintenance is completed on time and brings significant improvements to the network, investor confidence may be restored, prompting a repurchase of RUNE tokens. This is often seen after major improvements to a blockchain network are announced.

Conclusion and Recommendations

  • Technical Strategy: For traders looking to enter, the $2.00 level could be a strategic area for accumulation with a short-term target of $3.00. However, if price falls below this support, a potential deeper decline to $1.50 should be watched out for.

  • Pay Attention to Fundamentals: Investors are advised to keep an eye on updates from the ThorChain team regarding network maintenance. Positive developments could be a catalyst for a trend reversal.

  • High Volatility: Traders should be aware of the risk of high volatility, especially during network maintenance periods. Use strict stop-losses to protect capital.

Disclaimer: This article is for educational purposes only and is not investment advice. Do your own independent research before making any investment decisions.