Render [RNDR] has experienced a notable surge in the market, capturing the attention of traders by successfully surpassing key resistance levels, indicating a resurgence of bullish momentum.
Currently, RNDR is trading at $7.08, showing a 5.23% increase over the last 24 hours after a confirmed retracement in the daily timeframe, marking the end of a prolonged downward trend.
The upcoming target of $12.05 represents a potential 70% upside. The question arises – Is the prevailing market sentiment supportive of this optimistic outlook?
Breakout Momentum Driven by Retracement
RNDR has broken out of its descending channel, a technical pattern that had constrained its upward movement for an extended period. Rebounding from a strong support level around $4.00, the token gained bullish momentum, backed by consistent buying pressure.
By surpassing the critical resistance level at $6.67, the retracement was confirmed, signaling the initiation of a new uptrend. As RNDR moves closer to $12.05, it appears poised to challenge higher price levels in the near future.
Nevertheless, hurdles still exist as merely breaking out of a retracement phase does not ensure sustained upward progress. The $12.05 resistance level, a historic area of seller dominance, will test the strength of RNDR’s momentum.
Technical Indicators Point to Strength
Technical indicators offer further grounds for positivity. The crossover of the 9-day and 21-day Moving Averages signals robust bullish momentum. Furthermore, the Relative Strength Index (RSI) currently stands at 68.54, indicating significant buying activity but approaching overbought conditions, hinting at possible short-term consolidation before further upward movement.
Moreover, volume trends corroborate the ongoing price breakout, with increased trading volumes during the upward trend confirming heightened market interest, potentially propelling RNDR towards its target.
Caution Indicated by On-Chain Data
Despite the bullish price surge, on-chain data shows a sharp decline in daily active addresses, plummeting from 703 to 209, suggesting a decrease in user engagement.
This decline raises concerns regarding whether the rally is primarily driven by speculative interest. Nonetheless, a drop in active addresses typically coincides with price stabilization and might not impact long-term prospects significantly.
Positive Market Metrics
Traders’ sentiment has notably improved, evidenced by a 9.79% rise in Open Interest (OI) to $121.79 million. This increase implies that more traders are positioning themselves for RNDR’s next significant move. The alignment of market sentiment and price action supports the case for further upward momentum.
Overall, RNDR’s breakout above $6.67 confirms its bullish retracement, with technical indicators and market sentiment aligning for a potential push towards $12.05.
Despite the decline in active addresses warranting caution, the overall outlook remains optimistic. As a result, RNDR appears well-prepared to sustain its upward trajectory, barring any unforeseen market developments.