Render Price Analysis: Bearish Breakout Spells Crash to $3.6

Render price has lost a great deal of value despite being the largest decentralized cloud GPU rendering platform in the blockchain space. It is down 60% from its all-time high. Other than the prevailing market conditions, there is no discernible internal cause for the price drop. RNDR technical analysis forecasts more downside for the asset in the short term before a potential reversal.

Render Price Looks for Lower Support

The price of Render is currently in a downward trend, trading below both the 50-day (green line) and 200-day (black line) exponential moving averages (EMA), confirming bearish momentum.

Recent candlestick patterns indicate rejection at the support-turned-resistance, a bearish signal suggesting a possible downward continuation breakout from the descending triangle.

On July 28, the 50-day EMA crossed below the 200-day EMA, forming a death cross on the daily timeframe, indicating the start of a prolonged bearish trend.

RNDR’s price of $5.4 has support around it, which also coincides with the 61.8% Fibonacci retracement level. If sell pressure persists, Render price may drop to $3.6, where the next level of support exists. This would be a 34% drop from its current price.

Conversely, Render has immediate resistance around $7.09 (50-day EMA) and $7.12 (200-day EMA). This level also aligns with the bottom of the descending triangle and doubles as a major resistance level.

The Relative Strength Index (RSI) is at 32.29, indicating a bearish stance leaning towards oversold territory. This suggests a potential for further downside before any reversal. Similarly, the Chaikin Money Flow (CMF), which shows the buy or sell pressure on an asset, is at 0.06 and consolidating, indicating that money flow is positive, with selling pressure slightly stronger than buying pressure.

RNDR trading volume dropped toward the end of July, signaling a lack of buying interest at the current levels. This typically precedes a continuation of the bearish current trend.

If the Render price breaks above $7.12 and fails to retrace lower, it will push the asset back into the descending triangle. Further upside movement above $9 may signal weakness in the market and invalidate the current bearish thesis.

The RNDR price may increase to the next significant resistance, around $11.5, and then return to its all-time high.

RNDR Onchain Metrics Show Weakness

Data from IntotheBlock shows that Render’s daily active addresses dropped by 5%, signaling a reduced interest in the project. Additionally, Coinalyze data shows that Open Interest (OI) in RNDR increased by 9% in the last 24 hours. Coupled with the dropping price, this signals that the bearish trend will likely continue.

Conversely, the average time held of coins transacted shot up in the first half of July, indicating that investors may be willing to hold on to their coins rather than offload in light of precarious market conditions.

A sudden increase in adoption rate and active address would suggest the market is getting stronger and could invalidate the bearish on-chain metrics, resulting in a positive Render price movement.