There are two perspectives on how the price of RAIN is determined.
Fundamental Value: This approach looks at on-chain metrics, project performance, and financial indicators of RAIN. Over the long term, factors like supply and demand, tokenomics, use cases, project roadmap, and relevant regulations or governance can all affect RAIN's value.
Price Action: This perspective primarily involves using technical analysis tools like chart patterns, MACD, RSI, and Bollinger Bands to forecast price movements of RAIN based on past trends, based on the principle that 'history tends to repeat itself.' Price action of RAIN is also affected by news, announcements, and the general sentiment of the community.
While long-term investors focus on the fundamentals, short-term traders typically rely on technical indicators. Both can influence the price of RAIN.