Absolutely, though in this case it would be the most obvious translation, since it was a frisian settlement and "Rung" and "Holt" are both frisian words in use. It is possible that Rung here could mean stanchion/post (so for wood that makes strong posts), but unlikely so close to the sea, is it not?

I get what you mean, though. Here is a village called Großenwiehe, easy to be translated as "Great Consecration", and that was the commonly accepted meaning. Only much later it became apparent that "-wiehe" probably came from wighæ, so "Great Fortification". And in fact the old fortifications are still visible today.