The digital graphics rendering platform Render has experienced a notable comeback recently, with its token value undergoing a solid increase. After a period of 1.5 years, Render has successfully surpassed key resistance levels, indicating a strong shift in its market position. Additionally, the growing number of active addresses hints at the possibility of a big movement in the coming hours.
RNDR’s MVRV Ratio Declines
In the past day, following a bullish increase in RNDR’s price, traders holding both short and long positions engaged in massive liquidations. According to Coinglass, bears liquidated positions worth over $800K. On the other hand, as the price peaked at $3.2, bulls also left the market with profits, resulting in the sale of positions valued at nearly $250,000.
Data from IntoTheBlock reveals a decline in the MVRV ratio as it dropped from a peak of 1.6 to 1.44. The MVRV ratio is a comparison between the market capitalization (the current market value) and the realized capitalization (an aggregate measure of the value at which coins were last moved).
As the RNDR price surges, so does its market value. A declining MVRV ratio suggests that the realized value is getting closer to the market value. This suggests that the altcoin is trading closer to its “fair value” based on historical transaction data.
If the MVRV ratio falls significantly toward 1, it can signal that the altcoin is potentially undervalued. Investors continue to transact Render as the market value increases, signaling increased confidence.
Additionally, there has been an increase in the daily active address count, which has risen by 56% over the past week. This metric has surged from 871 to a peak of 1410, following RNDR’s surge of nearly 35% during the same period.
What’s Next For RNDR Price?
RNDR’s price broke through the $3.3 resistance barrier after 1.5 years. However, the price is now facing slight resistance to hold its current momentum as bears stepped in. As of writing, Render price trades at $3.3, surging over 29% from yesterday’s rate.
The buying momentum continues to intensify as buyers attempt to touch the next resistance. If buyers continue to defend increasing profit-taking sentiment near the current level, RNDR price might surge toward $4.3. This level is expected to be a battleground for buyers and sellers. Should the price surge above this, the next likely target could be the $5.5 level. This scenario hints at the possibility of a trend reversal, as bears will likely dominate here.
However, if the bears manage to drive the price below the EMA 20 trend line at $2.7, the key support will be at around $2. A decline below this level will indicate the complete domination by the sellers.