Render price to take a 15% step back, while the uptrend for RNDR is still in good shape
- Render price drops lower in the ASIA PAC and European sessions on Wednesday.
- RNDR grows overheated after a firm rally since early April.
- With some profit-taking underway, price action could drop as much as 15% before meeting substantial support.
Render (RNDR) price has sold off over 7% for the day as both the ASIA PAC and European sessions have given up on the altcoin’s upside thesis. The sell-off comes after RNDR has been on a staggering and relentless rally since early April and desperately needs a cooldown. Keeping the uptrend intact, RNDR could still tank as much as 15% before finding support.
Render price needs a small step back before advancing again
Render price has been on a staggering rally since early April that has amounted to a whopping 186% price increase. It is not abnormal then that the Relative Strength Index (RSI) has spent more time in the overbought than in the oversold area during that period. After hitting a curb at $2.80, it appears to be time once again for a cold shower in this rally.
RNDR could find initial support in that cooldown moment near $2.45 with a very slim ascending trendline (orange). It is quite fragile though as it has been broken on previous occasions. Instead, look for $2.19 as a very firm entry-level as it has been acting as a pivotal price during the rally. This means that a roughly 15% fade could get underway.
RNDR/USD 4H-chart
The RSI has already nudged lower on the back of the sell-off on Wednesday morning and could be enough to bring the RSI back to neutral near 50. That would fall in line with a simple bounce off that nearby ascending trendline at $2.45. The topside target is at $2.95 with the monthly R1 as a cap.
Author
Filip Lagaart
FXStreet
Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.
