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Critical Turning Points: Will RENDER Break Free from Its Downtrend?
Welcome back to another edition of The Crypto City Trading Newsletter, your go-to source for in-depth technical analysis and expert insights into the dynamic world of cryptocurrency trading. Today we are focusing on the Daily Chart of RENDER.
The RENDER/USDT chart shows that the market has been in a downward trend for approximately 83 days, moving within a clear descending channel marked by two red lines. Recently, the price bounced back after hitting a significant support zone (Yellow) at $3.395 – $3.670, but it is now facing resistance as it tries to move higher.
Key Support and Resistance Levels
We saw a pullback in the price after rejection from the resistance level at $6.321 and the descending channel upper boundary. If the price falls to the support zone (Green) at $5.033 – $5.291, this area might serve as strong support, where buyers could re-enter and prevent further decline. Below that, there is another support zone (Yellow) at $3.395 – $3.670, which could come into play if the price drops significantly.
On the upside, the price is currently facing resistance at $6.321 level. This level is crucial because it aligns with the upper boundary of the descending channel. If the price manages to break above this resistance, the next target would be around $7.776, another key resistance level. Beyond that, a much stronger resistance zone (Blue) lies at $9.702 – $9.985, which was a previous area of consolidation before the price dropped.
Recent Price Action
The recent candles on the chart suggest that there has been some buying interest, with the price rising after a pullback. However, the current level of $6.321 is proving difficult to break, as indicated by the latest candle showing a potential rejection.
Volume Analysis
The trading volume of $1.787M has increased slightly during this recent upward move, suggesting that buyers are stepping in. However, the volume isn’t significantly high, which raises concerns about the strength of this rally.
Possible Outcomes
A decisive breakout above the $6.321 resistance level and the upper boundary of the descending channel could signal a potential reversal. If this occurs, the next target would be the $7.776 resistance, followed by the resistance zone (Blue) at $9.702 – $9.985. A breakout above this zone would suggest a strong bullish reversal with the potential to revisit the previous highs.
Failure to break above the $6.321 resistance could lead to a continuation of the downtrend. If the price reverses from this level, it may retest the support zone (Green) at $5.033 – $5.291. A breakdown below this support could open the door to further declines toward the support zone (Yellow) at $3.395 – $3.670 and if this support zone (Yellow) fails to hold the price we might see the price to test the lower boundary of the descending channel.
Technical Indicators
Based on technical indicators on a daily time frame
The relative Strength Index (RSI) value is at 57.234 (Neutral)
Momentum (10) is at 1.381 signaling a (Buy)
MACD Level (12, 26) is at 0.124 signaling (Buy)
Exponential Moving Average (50) 5.791 : (Buy)
Exponential Moving Average (100) 6.595 : (Sell)
Simple Moving Average (100): 7.237 (Sell)
Exponential Moving Average (200): 6.787 (Sell)
Ichimoku Base Line (9, 26, 52, 26): 4.997 (Neutral)
Volume Weighted Moving Average (20): 5.292 (Buy)
Hull Moving Average (9): 6.224 (Sell)
Interpretation
The overall interpretation from these indicators is that RENDER/USDT is showing bullish momentum, particularly in the short to medium term. The moving averages suggest that the price is currently trending upwards, supported by the buy signals across various timeframes.
However, the neutral signals from the oscillators and some sell signals from longer-term moving averages indicate that this upward movement may be facing some resistance or could be part of a larger correction within a broader downtrend. The mixed signals, especially in the longer-term averages, imply that while there is optimism for the near future, caution is still warranted. Traders might look to capitalize on the short-term bullish trend but should be aware of potential reversals, especially if the price encounters resistance near those long-term moving averages that are signaling a sell.
Liquidation Heatmap
This liquidation heatmap for Render Token (RNDR) over the past three months illustrates the areas of high leverage and potential liquidation risks. The chart highlights key price levels where traders are heavily leveraged, with green zones indicating areas of increased liquidation activity. As the price fluctuates, particularly around $4 to $5 and $7, the intensity of these green zones suggests significant support and resistance levels that are prone to volatile movements due to cascading liquidations.
Throughout this period, the market showed a clear downward trend in late July, followed by a consolidation phase and a subsequent price rise in mid-August. The increase in green zones during the price surge indicates growing bullish sentiment but also higher liquidation risks. This suggests that traders are taking on more leverage as the price nears critical levels, making these areas particularly sensitive to sharp movements.
Long-Term Trading Setup
We will buy in parts, we will divide our budget into 3 sections, and allocate for buying at each key support mentioned in the chart.
Here are the numbers where you can buy RENDER and take profits for the trade.
Buy 1: $5.291
Buy 2: $4.306
Buy 3: $3.395
At buy, 3 we will go all in because this is the lowest.
TP1: $7.776
TP2: $9.985
TP3: $13.838
Conclusion
The analysis of the RENDER/USDT chart, combined with the liquidation heatmap, offers a comprehensive view of the market dynamics and potential future movements. The chart indicates that the market has been in a clear downward trend for approximately 83 days, with prices oscillating within a well-defined descending channel. This period of decline was punctuated by a recent bounce from a critical support zone around $3.395 – $3.670, leading to a price rise that is now facing resistance at $6.321. The heatmap further reinforces these observations, showing high leverage and potential liquidation zones, particularly around $5 and $7, which align with key support and resistance levels identified in the chart.
From this analysis, we gain valuable insights into both the immediate and longer-term price action of RENDER. The indicators suggest a mixed outlook: while short to medium-term momentum appears bullish, as evidenced by buy signals from key indicators like the RSI and certain moving averages, the overall downtrend and resistance at $6.321 pose significant challenges. The heatmap’s visualization of liquidation risks at critical levels adds another layer of complexity, highlighting the potential for sharp movements if these levels are breached. Therefore, while there is optimism for a short-term rally, traders should remain cautious, especially near these pivotal price points, as the market could quickly reverse, particularly if it fails to break through established resistance levels.
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This detailed analysis provides a comprehensive understanding of the current market structure and potential scenarios. Traders can use these insights to make informed decisions and effectively navigate the market.
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