The price of RENDER has skyrocketed by nearly 85% in the last week, positioning it as a key contributor to the recent surge within the AI sector. While the overall AI market has climbed approximately 18% during this timeframe, RENDER’s performance stands out as a primary catalyst behind this upward momentum.
At first glance, this price surge appears robust and convincing. The acceleration is rapid, momentum indicators have revived, and capital inflows have improved markedly. However, a deeper analysis of underlying data reveals a more nuanced scenario.
RENDER’s Price Climbs Yet Remains Confined Within Bearish Boundaries
Despite its sharp recovery, RENDER continues to trade inside a descending channel that dates back to early October. This pattern is characterized by progressively lower highs over time and signals that sellers still dominate the broader trend.
The recent upswing pushed prices close to the upper edge of this channel but failed to break through it decisively. Notably, resistance at this trendline is relatively weak since it only features two clear touchpoints; nevertheless, sellers managed to defend it effectively.
This rejection manifests clearly in daily candlestick charts where long upper wicks indicate selling pressure—buyers initially drove prices higher but were quickly met with selling near resistance levels that forced prices downward again. Such behavior typically reflects structural constraints on rallies.
Capital flow metrics further validate that this was no mere weak bounce back. The Chaikin Money Flow (CMF) indicator—which measures money entering or exiting an asset—showed increasing accumulation even while RENDER’s price declined from October through early January.
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As prices moved higher recently, CMF broke above its own descending trendline and crossed into positive territory—confirming genuine capital support for the rally—but despite such backing, it wasn’t enough to breach the bearish channel’s ceiling.
In summary: although supported by real buying interest during its rise, RENDER lacks sufficient strength yet to overturn its prevailing downtrend.
Diminishing Buying Momentum Signals Emerging Risks
A further warning sign lies beyond just price action—in shifts within exchange flow balances help explain those extended upper wicks observed earlier on candles.
The Exchange Flow Balance tracks tokens moving off exchanges; large outflows usually indicate strong buying intent coupled with holders planning long-term retention whereas declining outflows suggest waning demand or increased profit-taking activity.
Within just 24 hours recently, RENDER saw exchange outflows plunge dramatically—from around 203K tokens down to roughly 49K—a staggering drop of about 76%. This sharp slowdown in token withdrawals coincided precisely when prices encountered resistance zones.
Simultaneously, momentum indicators are flashing cautionary signals.
The Relative Strength Index (RSI), which gauges momentum intensity, has formed a higher high while RENDER’s price approaches forming a lower high—a hidden bearish divergence pattern often signaling weakening momentum despite elevated pricing levels.
This divergence remains unconfirmed until confirmed by subsequent daily closes below $2.48 which would cement lower-high formation indicating potential loss of rally strength rather than growth.
Together , decreasing buying pressure combined with fading momentum clarifies why & nbsp ;RENDER struggled at critical resistance points despite notable recent gains .& lt;/ p & gt;
<h2> ;Critical Price Levels Will Determine Render's Next Move
With conflicting signals from both trend resistance and momentum indicators , current Render price thresholds now carry greater significance than technical oscillators .
For bulls aiming control , achieving clean daily closes above $2 .56 is essential —this breakout would shatter descending channel limits opening doors toward $2 .93 targets where broader bullish trends could emerge .
Conversely if bearish patterns prevail downside risks escalate rapidly : initial support lies near $2 .05 implying about -14 % retracement ; deeper corrections might reach $1 .80 or even extend toward stronger pullbacks near $1 .59 under severe conditions .
& nbsp ;While Render fuels much of AI ’s ongoing rally , chart patterns reveal tests occurring at pivotal junctures —capital inflows ignited initial moves but sustained upside depends heavily on follow-through via consistent demand alongside stable momentum movements.
& nbsp ;Future gains hinge less upon speed already achieved than whether Render can finally escape months-long constraints imposed by dominant downtrends.
& nbsp ;This article originally appeared on BeInCrypto titled “Render Rally Powers The AI Boom But A 76 % Drop In Buying Pressure Exposes Cracks”.