Why Render’s (RNDR) Correction Could Be a Buy Signal Before $3
Render (RNDR) was one of the altcoins in the spotlight following a period when Bitcoin (BTC) tapped $35,000. At the time of writing, the price of RNDR was $2.48 after a showstealing 64% hike in the last 30 days.
Santiment, an on-chain analytic platform was able to identify reasons for Render’s exponential growth within the aforementioned period. According to Santiment, RNDR was a beneficiary of increased network growth, activity, and whale interaction. Due to these activities, the token’s social dominance reached its highest within the same timeframe.
📈 #Render is +64% over the past 30 days, as one of the best performing projects during this timeframe. Watch $RNDR’s social dominance coming off its highest discussed days in months. Address activity, network growth, & whale transactions are sky high. https://t.co/K9mxMeXKaK pic.twitter.com/uDN1FRPAuA
— Santiment (@santimentfeed) October 30, 2023
More Expectations for the RNDR Price
Typically, a combination of these metrics listed above is a sign that a project is getting increased attention and adoption from the market. Also, the effect on the price action is usually positive, which is what RNDR has displayed.
Despite the tremendous price increase, RNDR may still possess the potential to increase again in November. One of the reasons for this is because of the fundamentals behind the project. For context, RNDR serves as the utility token for Render, whose focus is on distributing idle computational power for rendering from Graphic Processing Unit (GPU) providers.
Because of this, RNDR is categorized under the tokens connected to Artificial Intelligence (AI) tokens since GPUs are fundamental to deep-learning models. When November begins, there will be a lot of conferences related to AI. So, there is a chance that cryptocurrencies like RNDR may build on the narrative, and perform well during the month.
Lows Before Another High
RNDR/USD 4-hour chart showed that the token was undergoing a period of correction. This trend was expected considering how little profit-taking had been seen during the period of growth from $2.10 to $2.59.
However, the Relative Strength Index (RSI) had dropped to 5.06 at press time. For a reading that was as high as 97.60 on 29 October, the fall indicates that RNDR was beginning to get oversold.
By default, values of the RSI over 80 means the asset is overbought. Conversely, values below 20 mean it’s oversold. Furthermore, the bearish RNDR trend is a buy signal that could change the price direction.
If buying pressure increases at the support created at $2.44, RNDR may eye new heights. Considering the market momentum, the token has the potential to jump above $2.70 while approaching $3.00.
RNDR/USD 4-Hour Chart (Source: TradingView)
Another indicator supporting the bullish thesis is the Directional Movement Index (DMI). As shown above, the +DMI (green) was 27.43. On the other hand, the -DMI (red) was 12.47. The difference in these indicators is a confirmation that selling strength was not as much as buying momentum.
Therefore, RNDR may begin to rise in the upward direction soon. This bias was also supported by the Average Directional Index (ADX). The ADX (yellow) was 57.24, indicating a strong directional movement for RNDR on the upside sooner or later.
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