$RUNE recently broke out above a falling wedge but failed to hold, causing a 9% price drop and a bull trap.

Negative funding rates signal bearish sentiment, with short traders paying long traders, predicting a further decline.

Fibonacci Retracement analysis suggests possible price drops to $2.53 or $1.32 if demand doesn’t improve.

$RUNE recently broke out of a falling wedge pattern after trading within it since its year-to-date high of $10.60 on March 13.

However, the breakout turned into a bull trap, as $RUNE couldn’t sustain upward momentum and has since slipped back into the wedge. This analysis explores the potential short-term implications for $RUNE holders following this reversal.

An assessment of the $RUNE /USDT chart has revealed that the altcoin broke above the upper trend line of its falling wedge on October 28. This pattern is formed when the price of an asset trends between two downward-sloping trend lines. The upper trend line acts as a resistance level, while the lower trend line serves as support.

When a coin breaks out of the upper trendline of the falling wedge, it is considered a bullish signal. This breakout suggests that buyers are overpowering sellers and that the price may be poised to trend upwards.

However, $RUNE reversed this trend on October 30 and has since fallen back within the wedge, creating a bull trap. The quick fall back into the wedge invalidates the breakout as the coin’s price has resumed its previous downtrend. Trading at $4.50 at press time, $RUNE’s price has fallen by 21% in the past four days.