The Render Crypto Token (RNDR) price has reclaimed a critical horizontal area and reached a new yearly high.
Although while the wave count supports the continuing increase, it likewise implies that a top is nearby.
Render Crypto Token Price Reclaims Key Level and Reaches New Yearly High
The RNDR price has moved upward since the beginning of the year. The price broke out over the $2.10 horizontal resistance area at the end of April. Nonetheless, instead of validating it as support, the price dropped below it on May 8.
The decrease was preceded by a bearish divergence in the RSI (green line). A bearish divergence occurs when a momentum increase does not accompany a price increase and often leads to bearish tendency 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 investment.
If the RSI reading is over 50 and the tendency is upward, bulls have an advantage, but if the reading is below 50, the opposite is true.
Regardless of the preliminary fall, the RNDR price has increased since May 11, reclaiming the $2.10 area in the procedure. During this time, the RSI broke out from its bearish divergence trendline.
Both of these are considered positive tendency signs that often lead to upward movements. After RNDR regained its footing, it reached a new yearly high of $2.42 on May 20.
RNDR Price Prediction: Wave Count Predicts Top
The technical analysis from the 12-hour time frame gives a positive tendency RNDR price prediction, mostly as a result of the wave count. Nonetheless, it likewise implies that a top may soon be reached.
Since the beginning of March, RNDR has been mired in a five-wave upward movement (black). If so, it is as of now in the fifth and final wave of this increase.
The possibly likely target for the top of the movement is $3.30. This would give wave 5 the same length as waves one and 3 combined. In addition, the level coincides with longstanding resistance from the daily time frame.
Regardless of this positive tendency RNDR price prediction, a fall below the $2.26 local low (red line) 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.
