On the daily chart, Render experienced a significant 15% drop in price, reflecting uncertainty in the broader market. Interestingly, at the time of reporting, approximately 70% of RNDR holders were in a profitable position. This indicates that a considerable number of holders have maintained their long positions.
However, there arises a question about the sustainability of this profitability, particularly as the altcoin approaches a crucial support level both technically and fundamentally.
The profitability indicator serves as a two-sided coin. While it showcases the resilience of the investor base, it could also lead to selling pressure as profitable holders aim to secure their gains.
Both of these factors make the upcoming critical support level at $8.26 vital for RNDR’s short-term trajectory.
Decrease in RNDR Whales and Trading Activities
Although profitability remains relatively high, Render’s whale activity has exhibited signs of slowing down. For instance, data from IntoTheBlock shows a notable 79% decline in large transactions over the past 24 hours.
Such a steep drop in whale involvement may indicate a lack of confidence among significant players, which often foreshadows prolonged bearish trends.
Simultaneously, retail activity seems to be cooling off as well. For instance, the number of active addresses decreased by approximately 2% over the same period, hinting at a diminishing enthusiasm among smaller holders.
These combined metrics portray a market gradually losing momentum.
RNDR’s Price Nearing Crucial Support Levels
As Render’s price continues to decline, attention is focused on the key support level at $8.26. Historically, this level has served as a psychological barrier where buyers could intervene to prevent further downward movement.
However, if this support level fails, it could trigger further declines. The 70% of profitable Render holders will play a pivotal role in this scenario. Their decision to either endure the price correction phase or opt for profit-taking could significantly impact the crucial support level.
Furthermore, beyond the technical and on-chain metrics discussed, the liquidation of 162.34k positions at $8.269 could indicate a potential price reversal and the beginning of a new rally.