Journalist
Posted:
- RENDER’s price trend has been bearish in recent months.
- The retest of the $4.4 support zone could provide a buying opportunity.
Cause [RENDER] has recaptured virtually all the gains it made during the August 21-26 surge. At the time of writing, it was trading at $4,716, close to the $4.1-$4.4 support zone.
Source: RENDER/USDT on TradingView
Technical indicators had turned bullish during the price rally, but buyers could not sustain the pressure. The OBV resumed its downward trend and the RSI also fell below the neutral 50.
However, some on-chain metrics gave more positive signals.
Buying opportunity for RENDER
Source: Santiment
Daily active addresses have been on a downward trend since rising in July. This was disappointing, as lower network participation indicates reduced demand.
Still, the average coin age has been trending upward over the past six weeks.
The inference was network-wide accumulation. Moreover, the 30-day MVRV has fallen below zero, showing that short-term holders suffered a small loss.
Therefore, the token was undervalued but underwent accumulation, providing a good buying opportunity.
Source: InTheBlok
AMBCrypto found that the number of longer term holders has increased in the past month. Data from IntoTheBlock shows that the number of holders and cruisers has increased, while the number of traders has decreased.
Implications for price developments and market sentiment
Source: Coinalyse
The decline in the number of active traders compared to the above benchmark meant that speculators and short-term holders were much less interested in holding the coin that is in a short-term downward trend.
The Open Interest in the derivatives market has also been declining in recent days, which together indicate bearish sentiment in the near term.
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The spot CVD was also in a sustained downtrend. The lack of demand in the spot market was consistent with the OBV’s evidence that buying pressure was weak.
Overall, while RENDER presented a buying opportunity, investors may want to wait for a decline to the $4.1-$4.4 zone before attempting to enter.
