Render token faces increased pressure from sellers
The recently renamed Render token has been fluctuating in a specific price range since early July. While the broader market has been trending upwards, demand for Render has decreased, potentially threatening its support levels. The token's price has been bounded by a horizontal channel defined by resistance at $7.20 and support at $5.70.
This price movement reflects a balance between buying and selling pressure. However, recent data suggests that selling pressure is increasing, which could push the price below these established support levels.
Why is the Render token experiencing difficulties?
Market data from IntoTheBlock shows a significant drop in the number of daily active and new addresses for Render last week. Specifically, the number of unique addresses transacting with the token decreased by 84% and the number of new addresses created for altcoin transactions decreased by 77%. This trend indicates a broader decline in market interest and may contribute to negative sentiment around the token price.
In addition, whale investors, who own more than 0.1% of assets, have also been cautious. Net token flow among these large investors has plummeted by 99%, suggesting that they are offloading their assets. This increased selling activity among major holders further adds to the downward pressure on the RENDER price.
What's next for the Render Token?
If the current selling pressure continues, the RENDER price is likely to test its support level and may even fall below it. According to chart analysis, the price could fall to around $5.66 if selling continues without a counterbalancing increase in buying activity. Conversely, if the token sees a surge in demand and accumulation, it could rebound and target $ 7.45, breaking its current resistance.
Key takeaways
- Keep an eye on the support level at $ 5.70 and resistance at $ 7.20 for potential price changes.
- Watch for changes in the number of active and new addresses as indicators of market interest.
- Pay attention to whale activity; significant inventory declines may signal increased selling pressure.
- Monitor online data sources such as IntoTheBlock for real-time market information.
If the downtrend continues, the price of RENDER could fall to $5.66, reflecting bearish market sentiment. Conversely, a surge in buying activity could lift the price to $7.45, suggesting a potential recovery. Investors should keep a close eye on these indicators to make informed decisions. $RENDER
