The Render network [RENDER] has experienced significant growth on the price charts and a surge in interest from large investors amidst the resurgence of AI and DeFi.
Recent data from Santiment shows that big investors have been increasing their holdings of RENDER during the recent recovery period.
Over the past three months, they have acquired an additional 3.7% of the total token supply, equivalent to 20.54 million tokens, increasing their ownership to 92% of the overall supply.
“Wallets holding at least 100K RENDER, categorized as sharks & whales, have accumulated an additional 20.54 million coins (with a value of $126.3 million) in just 11 weeks, now possessing 91.82% of the total supply.”
Is Following the Big Investors a Good Idea?
Significant purchases by major wallets often indicate a strong belief in potential future price increases, particularly with optimistic predictions for the fourth quarter.
In September, the token saw a 26% increase in value amidst a broader upswing in the AI sector.
After a prolonged decline in August, RENDER has remained below $6.3, marking a low point in the third quarter. On the daily charts, the altcoin has formed a bullish double-bottom pattern, with $6.2 serving as the key level to watch.
A move higher could propel RENDER by almost 30%, potentially pushing it above $8 or the 200-day Moving Average.
However, for the recovery to continue, buyers must surpass the $6.2 threshold, with a bearish order block visible at $7.
If the token manages to break above $7, the next bullish target would be $10.
Despite the enticing risk-reward ratio of RENDER, there remains a notable supply overhang from impending token unlocks.
Based on Token Unlocks information, only 60% of the total token supply of 644 million has been released thus far.
Around 235 million tokens are still locked (To Be Determined Locked), involving activities such as treasury functions, without a set timeline for their release.
This substantial supply overhang could influence prices if suddenly introduced to the market.
Therefore, the dominance of big investors in RENDER implies that they will have a significant impact on prices. Hence, traders should pay attention to their actions for insights into entering the market and identifying profit-taking opportunities.