- The render has increased by 14.08% in the past week.
- Amid strong positive market sentiment, short sellers are unconvinced of a potential downside.
Since the crypto markets rebounded after Fed rate cuts, AI-themed coins have made significant gains on the price charts. With optimism and increased adoption, AI coins are leading the market rise. Amid this growth, Render [RENDER] is at the center of it all.
At the time of writing, Render was trading as high as $6.47. This marked an increase of 24.87% on the monthly charts, with an extension of the bullish trend with an increase of 14.08% in the past week.
Since hitting a monthly low of $4.45, the altcoin has maintained upward momentum. Therefore, these market conditions strengthened Render to absorb liquidation pressure according to ChainStatsPro’s analysis.
What market sentiment indicates
In their analysis ChainStatsPro stated that Render is experiencing a healthy and strong market as the altcoin absorbs liquidation while spot CVDs remain flat.
Source: ChainStatsPro
What this simply means is that there is no excessive buying or selling pressure that indicates indecision in the market.
Furthermore, the analyst pointed out that short sellers are uncertain, implying that they do not have strong convictions about their positions. Therefore, short sellers are uncertain about the possible downsides and thus do not bet on prices falling further.
Based on this analogy, the market is strong enough to absorb liquidations without experiencing extreme volatility, and short sellers are unsure of further downsides.
What Render Diagrams Suggest
While the numbers highlighted by ChainStatsPro provide a positive market outlook, it is essential to determine what other fundamental numbers indicate.
Source: Santiment
For starters, Render’s funding rate, aggregated by exchange rate, has remained positive over the past week. A positive funding rate indicates that long position holders are paying short sellers to hold their trades.
This shows that investors are strongly convinced of future price increases.
Source: Coinglass
Moreover, this demand for a long position is further supported by a positive OI-weighted funding rate. This has been positive over the past two weeks, suggesting that even during a recession, investors are willing to pay a fee to short sellers to maintain their positions.
Source: Santiment
Finally, Renders inflows have fallen from a high of 1.48 million RNDR tokens over the past week to 25,952 at the time of writing. This demonstrates the holding behavior of investors who store their assets in cold wallets.
Such behavior means that investors are unwilling to sell because they expect higher profits.
Is your portfolio green? Check the render profit calculator
Based on these market conditions, AMBCrypto’s analysis shows that Render is experiencing positive market sentiment and a favorable investor position. Such market sentiment could set the altcoin up for further gains on price charts.
If prevailing market conditions are maintained, Render will break the USD 7.0 resistance level. A breakout from this level will strengthen the altco and challenge the June highs of $10.5.
Credit : ambcrypto.com
