While the cryptocurrency market struggles today, especially with Bitcoin (BTC) and Ethereum (ETH), showing declines, the AI-focused Render token (RENDER) is displaying intriguing technical signs. Despite a 43% drop in recent months, the token’s price action indicates potential for a short-term rebound. This resurgence can be traced back to its support zone.
A descending broadening wedge pattern on the 4-hour chart suggests bullish momentum. This pattern often forms during corrections and could signal an upside breakout if sustained.
The 4-hour chart shows RENDER bouncing back from a recent price drop towards the lower trendline around $1.72. Notably, buyers stepped in at this level multiple times before, indicating it acts as dynamic support.
If bulls continue defending this support zone, RENDER could attempt to surge toward the next resistance level, $2.04. A breakout above the wedge’s upper boundary would signal a bullish continuation pattern and potentially trigger a bigger price rally towards its 200-day moving average at $2.5939.
However, traders should also be aware of potential risks. A breakdown below $1.72 could invalidate the wedge structure and expose RENDER to deeper downside pressure.
Overall, while technical indicators offer optimism for a possible rebound in RENDER’s price, market volatility and broader market stability remain crucial factors.
Disclaimer: This article provides informational insights and is not financial advice. Traders should exercise caution, conduct independent research, and make decisions based on their individual risk tolerance.