Render Token (RNDR) price has recovered a significant sideways zone and reached a new yearly high.
While the wave count supports a continued rise, it also suggests that a top is just around the corner.
Render Token Price Reclaims Key Levels and Reaches New Yearly Highs
The RNDR price has been on an upward trend since the beginning of the year. The price broke above the $2.10 horizontal resistance area at the end of April. However, instead of validating it as a support, the price broke 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 momentum is not accompanied by a price increase and often leads to a bearish trend reversal.
By using the RSI as a momentum indicator, traders can determine whether the market is overbought or oversold and decide whether to accumulate or sell an asset.
Bulls profit if the RSI reading is above 50 and the trend is up, but vice versa if the reading is below 50.
Despite the initial decline, RNDR price has risen since May 11, reclaiming the $2.10 area in the process. During this time, the RSI broke out from its bearish divergence trendline.
Both of these are considered bullish signals which often lead to an upward movement. After RNDR regained its footing, it reached a new yearly high of $2.42 on 20 May.
RNDR Price Prediction: Wave Count Prediction Top
Technical analysis from the 12-hour time frame gives a bullish RNDR price prediction, mostly due to wave counting. However, it also suggests that a top could be reached soon.
Since the beginning of March, RNDR has been engulfed in a five-wave upward movement (black). If so, it is currently in the fifth and final wave of this increase.
The most likely target for the top of the movement is $3.30. This will make wave five the same length as waves 1 and 3 combined. Additionally, the level coincides with long-term resistance on the daily time frame.
Despite this bullish RNDR price prediction, a drop below the $2.26 local low (red line) would mean that the top is over and a correction has begun.
In that case, the price could decline towards the $1.65 support area.
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disclaimer
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, unbiased reporting, but market conditions are subject to change without notice. Always do your research and seek professional advice before making any financial decisions.