The cryptocurrency market continues its recovery, one asset that’s catching the attention of traders and investors alike is RENDER, the native token of the Render network. After showing promising signs of upward momentum, many are speculating that the token could be poised for a substantial rally. However, before it can soar to new heights, certain conditions must align for RENDER to secure a breakout.
Recent on-chain data reveals that RENDER has been gaining significant traction, with exchanges recording $3.69 million worth of outflows. In the world of cryptocurrencies, outflows occur when assets move from exchanges to personal wallets, often signaling that traders are holding onto their tokens rather than selling them. This is generally seen as a bullish indicator, suggesting confidence in the asset and potential upside momentum.
Moreover, Render’s Open Interest has increased by 10% in just 24 hours. Open Interest refers to the total number of outstanding derivative contracts (such as futures) that have not been settled. A rise in Open Interest typically indicates growing trader interest and could signal the formation of new positions as the market anticipates further price movement. This uptick in interest could play a crucial role in the asset’s potential to break out.
While the on-chain metrics point to bullish sentiment, RENDER’s technical chart is also suggesting a potential upside move. According to AMB Crypto’s technical analysis, RENDER is approaching a critical point where it could break free from a descending trendline. This trendline, combined with a key horizontal level and the 200 Exponential Moving Average (EMA) on the four-hour chart, represents an important resistance zone that the token must surpass to initiate a rally.
The $8.10 level is a crucial point of resistance. If RENDER manages to close a four-hour candle above this level, it could trigger a 15% price increase, potentially reaching the next resistance point at $9.50. However, the most optimistic scenario would see RENDER climbing by 40% to hit the $11.65 level in the near future.
Another positive sign for RENDER is its Relative Strength Index (RSI), which currently stands at 50.5. The RSI is a momentum oscillator that measures the speed and change of price movements. A reading above 70 suggests that an asset is overbought, while a reading below 30 indicates it’s oversold. With RENDER’s RSI sitting comfortably below the overbought zone, it implies that there is still plenty of room for the price to rise, which is a positive sign for potential future gains.
For RENDER to achieve this potential 40% rally, it must first break through the current resistance levels. A successful close above the $8.10 mark would be a crucial step, but there are other factors to consider as well.
Investors eyeing RENDER should keep a close watch on its price action in the coming days. The key levels to monitor are $8.10, $9.50, and the ultimate target of $11.65. A breakout above these levels could signal a significant rally, but it’s important to remain cautious and watch for signs of volatility that could test these resistance points.
In conclusion, RENDER is showing promising signs of a potential rally, with strong on-chain metrics and bullish technical indicators. However, for it to achieve a 40% surge, the token must first break through crucial resistance levels and maintain positive market sentiment. If these conditions are met, RENDER could see substantial growth in the near future.
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