The digital asset Render [RENDER] has retraced almost all its earlier gains achieved during the price uptick from August 21st to 26th. As of the latest data, it was being traded at $4.716, hovering near the critical support range of $4.1 to $4.4.
Initial optimism among technical indicators during the price climb waned as buyers struggled to maintain momentum. The On-Balance Volume (OBV) resumed its downward trajectory while the Relative Strength Index (RSI) dipped below the neutral 50 mark.
Nonetheless, certain on-chain statistics offered a more encouraging outlook.
Potential Buying Position for RENDER
The number of daily active addresses had been on a decline since the surge witnessed in July, indicating a potential decrease in network activity and demand.
Contrarily, the average coin age had been steadily rising over the past six weeks, suggesting widespread accumulation across the network.
Furthermore, the 30-day Market Value to Realized Value (MVRV) fell below zero, indicating that short-term holders were facing only minimal losses.
Therefore, despite being undervalued, RENDER was witnessing accumulation trends, making it an appealing prospect for investors looking for a purchase opportunity.
An analysis by CryptoCrypto revealed a rise in the number of long-term holders over the past month. Insights from IntoTheBlock data indicated an increase in the number of holders and cruisers, while traders witnessed a decline.
Impact on Price Trajectories and Market Sentiment
The dwindling number of active traders as per the aforementioned metrics implies a lack of interest from speculators and short-term holders in retaining the coin amidst a short-term downtrend.
Moreover, the decline observed in Open Interest within the derivatives market corroborates the short-term bearish sentiment prevailing in the market.
Additionally, the continuous downtrend in the spot Cumulative Volume Delta (CVD) corroborates the weakness in buying pressure, aligning with the OBV’s indications.
While RENDER may currently present an attractive buying window, potential investors might opt to wait for a possible dip into the $4.1-$4.4 range before considering entry points.