Render [RNDR] has experienced a notable surge in the market, attracting considerable interest from traders after successfully surpassing key resistance levels, signaling a resurgence in bullish momentum.
Currently, RNDR is trading at $7.08, registering a 5.23% increase in the last 24 hours. This upsurge comes after a confirmed retracement in the daily timeframe, indicating the conclusion of a prolonged downward trend.
The next significant target of $12.05 presents a potential upswing of 70%, leading to the important question: Does the current market momentum justify this optimistic outlook?
Breakout Beyond Resistance Triggered by Retracement
RNDR has broken out of its descending channel, a technical pattern that had limited its upward movement for an extended period. Rebounding from a strong support zone near $4.00, the token has gained bullish momentum, supported by consistent buying pressure.
The breach of the crucial resistance level at $6.67 confirmed the retracement and kickstarted a new uptrend. As a result, with a clear trajectory towards $12.05, RNDR appears ready to challenge higher price levels in the days ahead.
However, obstacles remain, as a retracement breakout alone does not guarantee a sustained upward trend. The historical resistance at $12.05, known for its significance as a level of seller strength, will test the resilience of RNDR’s momentum.
Positive Signals from Render’s Technical Indicators
Render’s technical indicators offer further grounds for optimism. The recent crossover of the 9-day and 21-day Moving Averages signals a clear bullish momentum.
Moreover, at the time of reporting, the Relative Strength Index (RSI) stood at 68.54, indicating robust buying activity but nearing overbought conditions. This suggests the potential for short-term consolidation before any continued upward movement.
Additionally, volume trends support the current price breakout, with higher trading volumes during the upward trend affirming strong market interest that could sustain RNDR’s progress towards its next target.
Caution Advised Based on On-Chain Data
Despite the positive price action, on-chain data reveals a significant drop in daily active addresses, plummeting from 703 to just 209, hinting at a decline in user engagement.
While this raises concerns regarding whether speculative interest is the sole driver behind the rally, a decrease in active addresses often coincides with price consolidation and may not impact the token’s long-term prospects.
Encouraging Market Metrics
Traders’ sentiment has notably improved, as evidenced by a 9.79% rise in Open Interest (OI), reaching $121.79 million. This increase suggests that more traders are positioning themselves for RNDR’s imminent major move, aligning market sentiment with the price action, further supporting the case for continued growth.
In conclusion, RNDR’s breakout above $6.67 confirms its bullish retracement, with technical indicators and market sentiment converging towards a potential push to reach $12.05. While the decline in active addresses calls for caution, the overall outlook remains positive. Therefore, RNDR may be well-equipped to maintain its upward trend, barring any unexpected market shifts.