As a seasoned analyst with over two decades of experience in the financial markets, I have seen my fair share of bull and bear runs, market euphoria, and crushing downturns. The current state of Render (RNDR) is one that I find myself cautiously watching, given its substantial drop from its all-time high.
Despite being the leading decentralized cloud GPU rendering platform in the blockchain sector, RNDR’s value has significantly decreased. It currently stands at 60% less than its record high. Apart from general market fluctuations, no apparent internal factors have been identified as the cause for this price decline. Technical analysis of RNDR suggests further drops in the near future, followed by a possible recovery.
Render Price Looks for Lower Support
At present, the cost of Render is decreasing, dipping beneath not only its 50-day moving average (represented by a green line) but also its 200-day moving average (depicted by a black line). This drop suggests that the market sentiment is bearish, as indicated by the downward momentum.
current candle formations suggest that price has been denied at a level previously acting as support but now behaving as resistance; this bearish sign may hint at a potential breakout in the opposite direction (downward) from the descending triangle setup.
On July 28th, the 50-day Exponential Moving Average (EMA) dropped below the 200-day EMA, creating what’s known as a “death cross” on the daily chart. This pattern typically signals the beginning of a lengthy downward trend, or bear market.
The price of RNDR is currently at $5.4 and there’s strong support in this area, which is also the 61.8% Fibonacci retracement point. If selling pressure continues, the RNDR price might fall to $3.6, another level where it finds support. This would represent a potential drop of approximately 34% from its current value.
Instead, you might rephrase it like this: The price of Render appears to encounter strong resistance at approximately $7.09 (based on the 50-day Exponential Moving Average) and $7.12 (based on the 200-day Exponential Moving Average). This level is also significant because it coincides with the base of a descending triangle pattern and serves as a crucial resistance point.
In simpler terms, the Relative Strength Index (RSI) stands at 32.29, suggesting a strong bearish position and approaching oversold conditions. This could mean there’s more room for the asset to decline before it might reverse. The Chaikin Money Flow (CMF), which measures the balance of money flowing into or out of an asset, is currently at 0.06 and stabilizing. This implies that while there’s a slight excess of selling over buying activity, overall, the money flow is positive.
As a crypto investor, I noticed that the trading volume for RNDR started to dwindle significantly towards the end of July. This could indicate a decrease in buying interest at present levels, which often foreshadows a prolonged bearish trend continuing.
If the Render price surpasses $7.12 without falling back down, it could propel the asset back into a descending triangle formation. Moving higher than $9 might suggest a weakening market, potentially contradicting the current bearish outlook.
The cost of RNDR could potentially rise towards the next substantial resistance level, approximately $11.5, before possibly retreating back to its record peak.
RNDR Onchain Metrics Show Weakness
According to IntotheBlock’s data, there’s been a 5% decrease in daily active addresses for Render, which might indicate waning enthusiasm for the project. On the other hand, Coinalyze reports an uptick of 9% in Open Interest (OI) for RNDR within the past day. Given the falling price and this new data, it seems probable that the downward trend will persist.
Instead, it appears that investors are choosing to keep their coins longer during the first half of July, as the average holding period for transacted coins increased. This could suggest a reluctance to sell due to uncertain market conditions.
An unexpected surge in adoption rates and active addresses might indicate that the market is gaining strength, potentially overriding the negative indicators from on-chain metrics, leading to a favorable trend in the Render token’s price.
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2024-08-02 10:40