RENDER Nears Bear Market Floor After 70% Correction — Recovery Feasible

Key Takeaways

• RENDER’s price recovered after falling below $4 earlier in the week.
• Data shows that the token is undervalued following the correction.
• RENDER could be in line to rally above $7 if buying pressure rises.
• Interested in buying or selling RENDER coin? Read our review of the best exchanges to buy and sell RENDER.

On Tuesday, March 4, the Render (RENDER) token price dropped to $3.44, marking a 70% plunge from its all-time high.

This is the token’s lowest level since November 2023—the period when the 2022 bear market bottomed before recovery began.

With RENDER in a similar spot, will history repeat with a rebound, or is there more downside ahead?

RENDER Increase Meets an Obstacle

Although the RENDER token price dropped to its 19-month low earlier this week, it has recovered above $4 following an 8% hike in the last 24 hours.

However, on-chain data shows it could face challenges as it attempts to trade higher. One metric revealing this potential challenge is the Market Value to Realized Value (MVRV) Long/Short Difference.

Historically, the MVRV Long/Short Difference tells when the cycle has switched to a bull phase or slumped into a bear market.

When the metric is positive, it means long-term holders have more unrealized gains than their short-term counterparts.

This is typically a sign of a bullish market. However, when the metric is negative, it means that short-term holders have more gains, which is bearish for the price.

According to Santiment, RENDER’s MVRV Long/Short Difference slid to the negative region mid-February at -0.167. This position indicates a bearish phase.

However, RENDER’s price may not have yet reached its bear market bottom. Historically, recoveries have begun when the metric hovered between -0.19 and -0.21.

The metric may need to drop to this range if history repeats before a full rebound kicks in.

Token Undervalued

Meanwhile, the MVRV ratio also seems to support this. The image below shows it is on the verge of breaking above the zero line. The MVRV ratio shows whether an asset is undervalued or overvalued.

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When it is extremely high, it means that there are many unrealized profits, which could trigger selling pressure. But when it is low, it means holders might be unwilling to sell, which could be bullish.

As it stands, it is the latter for the token. Thus, if the 30-day MVRV ratio finally breaks above the zero line, the RENDER token price might trade higher in the short term.

RENDER Price Analysis: $7 Return Coming

A look at the daily chart also supports this potential for a higher price. According to the image below, the Chaikin Money Flow (CMF) has risen above the zero signal line.

This position indicates rising accumulation, indicating that some market participants have bought the RENDER dip. Should this continue, the RENDER token price might rise much higher than $4.

Looking at the Fibonacci indicator, the possible level for the price to reach could be $6.54 if buying pressure intensifies.

However, if RENDER fails to break the $5.11 resistance, the value could decline to $3.28