The recent surge in Render (RNDR) price, driven by hype surrounding NVIDIA earnings and OpenAI’s AI ecosystem, has reached an inflection point. As the euphoria subsides, experts anticipate a possible 30% decline in RNDR’s value, with support anticipated around $2.266.
Key Factors Contributing to the Potential Correction
- Profit-taking by investors after significant gains since mid-November.
- Decline in NVIDIA’s stock price post-earnings.
- Subsequent dissipation of hype surrounding OpenAI and its CEO’s reinstatement.
Technical Analysis Supporting the Bearish Thesis
Technical indicators suggest a potential correction for RNDR:
- RSI (Relative Strength Index) above 70, indicating overbought conditions.
- Rejection at the $3.451 resistance level.
- Confluence support zone between $2.825 and $2.266.
On-Chain Metrics Aligning with the Bearish Case
- Elevated Network Realized Profit/Loss (NPL) and whale transaction count.
- High Market Value To Realized Value Ratio (MVRV), indicating holder profitability.
- Increased supply of RNDR on exchanges, signaling potential selling pressure.
Conditions for Invalidation of the Bearish Thesis
However, a surge in buying pressure above current levels could invalidate the bearish thesis. A decisive move above $3.451 would potentially set the stage for a surge towards $4.000 or even $4.409.
Disclaimer
This analysis is based on market observations and technical indicators, and should not be construed as financial advice. Investors should conduct their own research and consult with a qualified financial advisor before making investment decisions.