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Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- RNDR climbed above a resistance level from May.
- The rally was strong and the chances of a deep retracement looked weak.
Cause [RNDR] has been showing an upward trend on the one-day price chart since September 15. In early 2023, RNDR reversed the $0.92 level for support. In early November, the $2.23 level was retested as support, which was a huge achievement for the bulls.
This set the stage for the next leg above $2.8, which has served as resistance since May. Network growth has slowed in recent days, which could be reflected in a short-term bearish move for the token.
The momentum movement above $2.8 and $3 has not stopped yet
Source: RNDR/USDT on TradingView
After retesting the $2.23 level as support earlier this month, the bulls surged forward again and successfully pushed prices past the $2.8 resistance. At the time of writing, RNDR was trading at $3,616 and has reversed the $3.3 level for support.
Therefore, a pullback to the $3 or $2.8 zone seemed unlikely, although this cannot be ruled out. The RSI was back above 70 and showed strong bullish momentum. The On-Balance Volume (OBV) has been trending higher since March.
There has been a substantial jump in recent days to underline continued buying pressure. The Chaikin Money Flow (CMF) also indicated strong capital inflows with a value of +0.18.
RNDR’s market structure was bullish. The $2.8 liquidity position would be an ideal buying opportunity, but it is unlikely to retreat that deeply.
Therefore, the $3.3 and $3 may also be attractive to buyers. To the north, resistance levels at $4.26, $4.85 and $5.45 set bullish targets for the coming weeks.
Should buyers be afraid of profit taking?
Source: Santiment
The 30-day MVRV ratio jumped above mid-August highs this past week. This meant that holders made a profit and were able to sell some of their RNDR tokens. It was unclear how far prices could fall in the event of a wave of selling pressure.
Read Renders [RNDR] Price prediction 2023-24
Surprisingly, the average coin age dropped from late September to early November. It has remained flat over the past two weeks, meaning RNDR holders moved their tokens en masse even as prices rose higher.
This led to concerns that bullish conviction was weak. Weighted sentiment and social volume have risen sharply recently, which has been good for the bulls in the short term.