Render Token (RNDR) price has regained a critical horizontal range and reached a new yearly high.
While the wave count supports the continued increase, it also suggests that a top is near.
Rendering Signal Price Reclaims Key Level and Reaches New Year High
The price of the RNDR has risen since the beginning of the year. The price broke out above the $2.10 horizontal resistance area at the end of April. However, instead of validating it as support, the price dropped below it on May 8.
The decline was preceded by a bearish divergence in the RSI (green line). A bearish divergence occurs when an increase in price is not accompanied by an increase in momentum and often results in bearish trend reversals.
By using the RSI as a momentum indicator, traders can determine whether a market is overbought or oversold and decide whether to accumulate or sell an asset.
If the RSI reading is above 50 and the trend is up, bulls have an advantage, but if the reading is below 50, the opposite is true.
Despite the initial drop, the RNDR price has rallied since May 11, reclaiming the $2.10 area in the process. During this time, the RSI broke out of its bearish divergence trend.
Both of these are considered bullish signs that often lead to upward movements. After the RNDR bottomed out again, it reached a new annual high of $2.42 on May 20.
RNDR Price Prediction: Wave Count is the Best Predictor
The technical analysis from the 12-hour time frame gives a bullish RNDR price prediction, mainly due to the wave count. However, it also suggests that a peak could be reached soon.
Since the beginning of March, RNDR has experienced a five-wave upward movement (black). If so, it is currently in the fifth and final wave of this expansion.
The most likely target for the top of the move is $3.30. This would give wave five the same length as waves one and three combined. In addition, the level coincides with long-term resistance from the daily time frame.
Despite this bullish RNDR price projection, a drop below the local low (red line) of $2.26 will mean that the top is in and a correction has begun.
In that case, the price could fall to the $1.65 support area.
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In line with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate and unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult a professional before making any financial decisions.
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