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The recently rebranded Render (RENDER) token has been oscillating within a defined price range since early July. Although the broader market has seen an upward trend, Render has faced diminished demand, potentially threatening its support levels. The token’s price has been confined within a horizontal channel, defined by resistance at $7.20 and support at $5.70. This price movement reflects a balance between buying and selling pressures. However, recent data indicates an upsurge in selling pressure, which may push the price below these established support levels.
Why Is Render Token Struggling?
Market data from IntoTheBlock shows a significant decline in the number of daily active and new addresses for Render last week. Specifically, there has been an 84% drop in unique addresses transacting with the token and a 77% decrease in new addresses created for altcoin transactions. This trend indicates a broader decline in market interest and may contribute to negative sentiment surrounding the token’s price.
Additionally, whale investors, who hold more than 0.1% of the asset, have also shown caution. The net flow of tokens among these large investors has plummeted by 99%, suggesting that they are offloading their holdings. This increased selling activity among major holders further compounds the downward pressure on RENDER’s price.
What’s Next for Render Token?
Should the current selling pressure persist, RENDER’s price is likely to test its support level and may even fall below it. According to chart analyses, the price could drop to around $5.66 if the selling continues without a counterbalancing increase in buying activity. Conversely, if the token sees a resurgence in demand and accumulation, it could rebound and aim for $7.45, surpassing its current resistance.
Key Takeaways
– Monitor the support level at $5.70 and resistance at $7.20 for potential price movements.
– Watch for changes in the number of active and new addresses as indicators of market interest.
– Pay attention to whale activity; a significant drop in holdings can signal increased selling pressure.
– Keep an eye on on-chain data sources like IntoTheBlock for real-time market insights.
If the downward trend continues, the price of RENDER may fall to $5.66, reflecting the bearish sentiment in the market. Conversely, an uptick in buying activity could drive the price up to $7.45, suggesting a potential recovery. Investors should closely monitor these indicators to make informed decisions.