Digital graphics rendering platform Render has seen a remarkable comeback of late, with its token value undergoing a solid increase. After a period of 1.5 years, Render has successfully surpassed the key resistance levels, indicating a strong shift in its market position. Furthermore, the growing number of active addresses indicates the possibility of a major move in the coming hours.
RNDR’s MVRV ratio is declining
Over the past day, following a bullish rise in the price of RNDR, traders with both short and long positions have engaged in massive liquidations. According to Coinglass, Bears has liquidated positions worth more than $800,000. On the other hand, when the price peaked at $3.2, bulls also exited the market with profits, resulting in the sale of positions worth almost $250,000.
Data from IntoTheBlock shows that the MVRV ratio has fallen from a peak of 1.6 to 1.44. The MVRV ratio is a comparison between market capitalization (the current market value) and realized capitalization (an aggregate measure of the value at which coins last moved).
As the RNDR price increases, so does its market value. A declining MVRV ratio indicates that the realized value is getting closer to the market value. This suggests that the altcoin is trading closer to its ‘fair value’ based on historical transaction data.
If the MVRV ratio drops significantly towards 1, it could be a signal that the altcoin may be undervalued. Investors continue to execute Render trades as market value increases, indicating greater confidence.
In addition, the number of daily active addresses has increased, which increased by 56% in the past week. This measure has risen from 871 to a peak of 1410, following the RNDR’s increase of almost 35% over the same period.
What’s next for the RNDR award?
The price of RNDR broke the resistance barrier at $3.3 after 1.5 years. However, the price is now facing slight resistance to maintain the current momentum when the bears entered. At the time of writing, the Render price is trading at $3.3, up over 29% from yesterday’s price.
Buying momentum continues to build as buyers try to reach the next resistance. If buyers continue to defend rising profit-taking sentiment near current levels, RNDR price could rise towards $4.3. This level is expected to be a battleground for buyers and sellers. Should the price rise above that, the next likely target could be the USD 5.5 level. This scenario indicates the possibility of a trend reversal as bears are likely to dominate here.
However, if the bears manage to push the price below the EMA 20 trendline at $2.7, the main support will be around $2. A drop below this level indicates the complete dominance of the sellers.
