Today, CryptoChipy will provide an in-depth analysis of Render (RENDER), formerly RNDR, from both a technical and fundamental perspective.

September has traditionally been a challenging month for cryptocurrencies, and last week was no exception. Declining demand and rising exchange inflows suggest many traders are offloading assets to mitigate risk, anticipating further declines. A significant amount of capital has been withdrawn from Bitcoin and Ethereum ETFs, signaling growing investor uncertainty.

The US released weaker-than-expected job data for August, and fears of a potential economic slowdown have led investors to shy away from riskier assets like cryptocurrencies. Render (RENDER) has dropped from $6.57 to $4.44 since August 27, 2024, with the current price at $5.15. So, where is the price of RENDER heading, and what can we expect for the rest of September 2024?

Please keep in mind that there are numerous factors to consider when entering a position, such as your investment timeline, risk tolerance, and margin if using leverage.

Purpose-built for renting and selling computing power

Render is a decentralized, peer-to-peer network of interconnected GPUs designed to enable the renting and selling of computing power, particularly for digital rendering tasks. Render taps into idle GPU resources worldwide to offer scalable, cost-effective, and efficient rendering solutions for digital artists and developers.

Specifically, Render is employed for virtual production needs requiring significant computing power, such as virtual reality applications, 3D content creation, and motion graphics.

Initially developed as a Layer 2 solution on Ethereum, Render transitioned to the Solana blockchain in late 2023 after a community vote, aiming to lower fees and improve transaction speed. Users could either remain on Ethereum with their ERC-20 RNDR tokens or migrate to Solana, adopting the SPL version, RENDER.

Render’s native token, RENDER, is a service token supporting projects that manage and share data via blockchain. RENDER tokens are used to compensate GPU owners for their rendering services and facilitate transactions within the network.

RENDER’s price is typically influenced by overall market sentiment, and like many other cryptocurrencies, it has experienced a decline after Bitcoin lost value from its recent highs. At one point, RENDER was trading above $13 (on March 17, 2024), but it has since dropped significantly, and the risk of further price declines is still present.

A challenging period for cryptocurrencies

September is historically a bearish month for cryptocurrencies, and this year has proven no different. Weakened demand, combined with rising exchange inflows, signals that many traders are offloading assets to reduce risk. Crypto analysts are uncertain if Bitcoin will remain above $50,000 after last week’s sell-off, but it’s clear that if Bitcoin falls below $50,000, many cryptocurrencies, including RENDER, will likely see further declines.

Meanwhile, weaker-than-expected U.S. job data and fears of an economic slowdown have made investors more cautious, steering them away from riskier assets like cryptocurrencies. With the broader market grappling with economic uncertainty and lackluster investor confidence, crypto market volatility is expected to continue, with potential further declines if the economic outlook doesn’t improve soon.

ETFs continue to play a major role

On Friday, U.S. spot Bitcoin ETFs experienced significant outflows, totaling $211.15 million, marking the ninth consecutive day of withdrawals. Fidelity’s FBTC led the losses, with $149.49 million pulled out, followed by Bitwise’s BITB with $30 million, and Grayscale’s GBTC at $23.22 million. Bitcoin ETF trading volume also dropped to $1.35 billion.

Slowing net inflows are a negative for RENDER, and this will continue to affect the price of the cryptocurrency. RENDER is a highly speculative investment, and investors should be aware that speculative traders might capitalize on a broader market downturn and sell off their altcoin holdings, including RENDER, contributing to further price decreases.

Technical analysis for RENDER

Render (RENDER) has fallen from $6.57 to $4.44 since August 27, 2024, with the current price at $5.15. The risk of further decline persists, and in the coming weeks, RENDER’s price may remain under selling pressure. The chart below highlights an important resistance level, and as long as the price remains below this, a trend reversal seems unlikely. Therefore, RENDER remains in the SELL-ZONE.

Key support & resistance levels for RENDER

In the chart from February 2024, I’ve outlined significant support and resistance levels that can guide traders on potential price movements. RENDER is still under pressure, but if the price surpasses $8, the next resistance target could be $10. The strong support level is at $4.5, and if the price breaks this level, it would trigger a “SELL” signal, with the next target at $4.

What supports a price increase in RENDER

The Render Network addresses major inefficiencies in digital content creation, especially the high costs and significant computational demands of 3D rendering. Traditional rendering, particularly for complex projects like CGI in films or 3D models, requires massive computational power, resulting in high costs and long wait times. This has been a challenge for artists and developers.

Investors should also consider that the general sentiment in the cryptocurrency market can play a vital role in RENDER’s price movement. If confidence is restored and the market rebounds from its current slump, there is potential for RENDER to rise along with other cryptocurrencies.

Factors indicating a decline for RENDER

A decrease in the number of users or projects using Render’s services could signal waning interest or trust in the platform. Technological issues, like bugs, inefficiencies, or scalability problems, could harm its viability. Furthermore, stronger competitors offering better or more cost-effective solutions could capture Render’s market share. The strong support level for RENDER is $4.5, and if the price drops below this level, the next target could be $4. Given RENDER’s correlation with Bitcoin’s price, any further drops in Bitcoin’s value below $50,000 could negatively impact RENDER’s price.

Analyst and expert opinions

Render Network solves significant issues in digital content creation, particularly with the high costs and heavy computational demands of 3D rendering. However, crypto analysts warn that the emergence of better competitors or technological failures could erode Render’s market share. Like many cryptocurrencies, RENDER is influenced by broader market sentiment, and if its trading volume continues to decline, the selling pressure may push the price to new lows.

Disclaimer: Cryptocurrencies are highly volatile and may not be suitable for all investors. Never invest money you cannot afford to lose. The information provided here is for educational purposes and should not be considered financial or investment advice.