Since early July, Render (CRYPTO:RENDER) has been trading within a horizontal channel, with its price oscillating between resistance at $7.20 and support at $5.70.
This consolidation indicates a period of equilibrium between buying and selling pressures, with neither side gaining enough momentum to drive the price significantly in either direction.
Recent data, however, suggests that demand for RENDER is waning.
On-chain metrics reveal a dramatic decrease in daily active addresses and new addresses over the past week.
Specifically, the number of unique addresses engaging in transactions involving RENDER has dropped by 84%, while the creation of new addresses has declined by 77%.
This decline in activity reflects a decrease in market interest and bearish sentiment, which could negatively impact the token’s price.
The reduction in address activity is complemented by changes in the behavior of large holders, or whales.
During the same period, the netflow for RENDER’s large holders has fallen by 99%.
This sharp drop indicates that whales are significantly reducing their exposure to the token, further contributing to the negative outlook.
Given the current market conditions, RENDER's price faces the risk of falling below its support level at $5.70.
Should this support fail to hold, the price could decline further, potentially breaking below this level and leading to additional losses.
The increasing selling pressure and reduced demand suggest that the token may struggle to maintain its position within the established channel.
Investors should remain cautious and closely monitor these developments.
A failure to sustain support at $5.70, combined with continued weakening in demand and selling pressure, could result in a more pronounced downtrend for RENDER.
Conversely, a recovery in demand or a shift in market sentiment could help the token regain stability and move back towards its resistance level at $7.20.