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The Fibonacci retracement tool is widely recognized in technical analysis for its ability to highlight key levels where the price may react. By charting Fibonacci levels between significant price peaks and troughs, we can identify critical support and resistance levels. In our analysis of the Rune/USDT pair on a one-day Binance chart, we utilized these levels to understand past market behavior.
The use of this tool revealed that Rune exhibited notable price reactions at various Fibonacci levels, including the 0.236, 0.382, 0.618, and 0.882 levels. Understanding these levels is pivotal as they provide insights into how the price may behave as it approaches these areas in the future.