Key Takeaways
Render (RNDR) has recently exhibited significant price movements, reflecting notable shifts in market dynamics.
As a long-lasting correction from March’s all-time high of $13.50 last year ends, there are signs of a potential reversal.
The price was 44% wick, indicating strong buyer presence at its recent low, but further confirmation is needed.
On the daily chart, RENDER appears to have completed a complex corrective structure labeled W-X-Y, with wave (Y) concluding near the $3.10 level, coinciding with the 0.786 Fibonacci retracement.
This zone has historically acted as a robust support, as evidenced by the bullish rebound. This was a quick spike, with the daily candle closing above $4,66, making a nearly 45% wick.
The previously oversold Relative Strength Index (RSI) shows a notable recovery, hinting at potential bullish momentum.
The descending channel structure observed post-wave (5) indicates that RENDER has been in a prolonged corrective phase.
The price recently tested the channel’s lower boundary, suggesting a potential trend reversal. The reaction from this support aligns with Elliott Wave principles, indicating that the price could be transitioning from a corrective phase into a new impulsive wave sequence.
Additionally, the Fibonacci retracement levels at 0.618 ($5.32) and 0.5 ($6.89) serve as critical resistance zones where price reactions may occur.
On the 1-hour chart, RNDR shows early signs of a new impulsive structure. The rebound from the $3.10 support marked the completion of wave (i) and is now finishing its second sub-wave at a higher low of $4.50, with wave (iii) potentially underway.
The Fibonacci extension suggests a target for wave (iii) around $6.89, coinciding with the 0.5 retracement level from the higher timeframe.
Wave (i) established initial momentum, followed by a shallow corrective wave (ii), indicating strong bullish sentiment.
As wave (iii) develops, we can expect interim resistances at $5.21 (0.618 retracement) and $5.33, where minor corrections could occur.
The RSI is recovering from oversold conditions, supporting the likelihood of continued upward movement.
If wave (iii) maintains its momentum, RENDER could test the $6.89 level, with wave (v) potentially extending beyond $7.00, depending on market conditions.
However, if RENDER fails to sustain above $4.00, the bullish scenario may be invalidated, leading to a retest of the $3.10 support zone.
However, the strongest signs of a coming reversal will be a breakout above the descending channel above $7.