Render's Price Surge to $4.4 Raises Sustainability Concerns Amid Low Network Activity
1min read Render, a decentralized GPU-based rendering solutions provider, is currently facing a critical juncture as bulls challenge the $4.4 resistance level, aiming for a breakout toward $7. This price surge has raised questions about its sustainability, as it did not coincide with an increase in network activity. The lack of development activity behind Render is a major concern for investors, indicating fewer improvements and patches for the network. This, coupled with the falling mean coin age, suggests that older coins are being spent or moved, a sign of selling pressure from holders.
The recent price bounce has taken the 90-day MVRV above zero, showing that medium-term holders are at a slight profit. However, this also underscores a strong distribution trend, which does not present a buy signal. The daily active addresses metric has also been in a downtrend since November 2024, and the recent price surge did not come alongside a surge in network activity. This raises the possibility that the price bounce might falter, giving holders a chance to exit their positions. The 7-day RSI is at 50, signaling a bullish momentum shift, but the social volume has only slowly increased over the past month, which is not indicative of a RENDER rally by itself.
Technical analysis highlights the importance of the $4.4 resistance level. If this level is flipped to support, it could set up a breakout beyond $7, making the previous high at $13 a target. However, the lack of network participation and the distribution phase of the past three months mean that investors should be cautious if they want to bid on RENDER. The massive retracement in 2024 and 2025 was seen as part of the bullish pennant that the altcoin has formed. A move beyond $7 would signal a breakout past this pennant, but the current warning signs suggest that this may not be a sustainable rally.
