Render (RNDR) Faces Pressure Amid Market Downturn, Falls 6% Over the Week

Render (RNDR) Faces Pressure Amid Market Downturn, Falls 6% Over the Week

The price of Render (RNDR), an AI-focused altcoin, has been under significant downward pressure, experiencing a 6% decline over the past week. Despite a brief recovery in the broader market, RNDR appears to be headed for a further correction.

This slump comes as Nvidia Corporation (NVDA), a leading chipmaker and tech giant, prepares to announce its second-quarter earnings on August 28th. Nvidia, renowned for its advancements in graphics processing units (GPUs) and AI technology, often influences the performance of AI-related cryptocurrencies, including RNDR. The current downtrend in RNDR may indicate that investors are bracing for potential challenges in the AI sector that could impact the token’s price trajectory.

Render Price Declines as Nvidia’s AI Dominance Grows

As Nvidia Corporation continues to dominate the AI chip market, the upcoming release of its financial results is highly anticipated. Nvidia’s aggressive expansion into AI technology, coupled with its leadership in GPU development, has solidified its position at the industry’s forefront.

With Nvidia’s stock nearing record highs, investors are keen to glean insights from the earnings report, which could potentially boost AI-based tokens like Render. There remains a prevailing belief that Nvidia’s stock has substantial growth potential, making it an attractive long-term investment.

Render Price Prediction: Awaiting a Catalyst to Reverse the Downtrend

Render’s price has been on a downward trajectory in the last 24 hours, following broader market corrections. The altcoin is currently trading below the $5 support level, hovering around $4.55 as of Wednesday—a slight 3% decrease.

If this downward trend persists and the broader crypto market sees a sell-off, RNDR could approach the $4.50 support level. Increased selling pressure might drive the price down to $4, reinforcing a bearish outlook.

The Moving Average Convergence Divergence (MACD) indicator is close to the zero line, suggesting a lack of strong momentum in either direction. Meanwhile, the MACD histogram shows slight fluctuations around zero, indicating a balance between buying and selling pressures.

The Relative Strength Index (RSI) is near the neutral 50 mark, currently at 48, signaling that the asset is neither overbought nor oversold. This supports the notion that Render is in a consolidation phase after its recent decline.

Data from Coinglass reveals a significant drop in RNDR derivatives trading activity, contributing to the current bearish market trend. Trading volume has decreased by 25.60% to $36.21 million, while open interest has declined by 8% to $22.10 million. These shifts suggest a decline in trader confidence and market liquidity, which could potentially lead to heightened volatility and further downward pressure on RNDR prices.

However, should market sentiment improve and buyers return, RNDR could aim for the $4.70 resistance level. A successful break above $5 could signal a shift toward a bullish trend, potentially driving the price up to $5.50. Stabilization at this higher range could pave the way for further gains, with the potential to reach $6.