Analyzing RENDER’s 11% surge: Is the momentum sustainable?

Render [RENDER] continued with its bullish streak, breaking out of the recent downtrend and summiting a three-week high of $1.92. 

As of this writing, RENDER traded at $1.91, up 11.23% on the daily charts, adding to its 6% weekly gains. Over the same period, the altcoin’s volume rose 48% to $81.5 million, reflecting increased market participation. 

RENDER speculators take hold of the market

While the market continued to suffer from reduced liquidity, RENDER has shown solid strength, consistent with active market participation. 

On the derivatives side in particular, RENDER has experienced sustained demand for Futures positions. CoinGlass data showed that altcoin Open Interest rose 21% to $60 million, while derivatives volume climbed 35% to $128 million. 

Such a jump in OI and Volume showed increased Futures market participation and steady capital inflows. In fact, over $9 million flowed into the futures positions over the past eight hours as of the 3rd of April. 

Meanwhile, the altcoin’s Long/Short Ratio rose to 1.28, signaling a higher demand for long positions. As such, longs accounted for 56%, while shorts accounted for 43% of the total Futures positions. 

When longs dominate, it suggests that most participants were bullish and aggressively positioned for more gains.

Profit takers return to the market

With RENDER reaching a three-week high, holders who have been underwater rushed to cash out. 

Looking at exchange activity, Spot Netflow turned positive after being negative for two consecutive days. At press time, Netflow was $460k, a significant reversal from -$507 the previous day. 

A positive netflow implied that the market saw more sellers than buyers. Such a shift in market behavior has historically weakened the market and led to pullbacks. Thus, extended profit realization could threaten recent gains and cause another slip.

Can the upside momentum hold?

RENDER has recorded a sustained week-long bullish momentum since it held the $1.6 support level. Buyers continually stepped in and defended higher price levels.

The altcoin’s Relative Strength Index (RSI) rose to 64, signaling strong upside momentum and buyer control of the market.

At the same time, the positive index of the Directional Movement Index (DMI) climbed to 27 while the negative index fell to 11. The rise in these two momentum indicators indicated strong upside momentum and confirmed the trend’s strength.

Therefore, the two signals indicate a potential continuation of the market demand trend. While profit takers remain active, their positioning is still not strong enough.

If the prevailing market conditions hold, RENDER could flip its immediate resistance at $2. However, if profit-taking accelerates and overwhelms demand, the altcoin could retrace to $1.6.

Final Summary

• RENDER surges 11%, touching a three-week high of $1.92 amid sustained demand.
• RENDER has shown strong upside momentum amid sustained short-term demand, but profit-takers’ return risks capping market gains.