RENDER Makes 4% Bounce From Ascending Support — Potential Rally May Follow

Key Takeaways

• RENDER faces potential reversal within the ascending channel.
• Price rejection at $7 could signal a deeper downtrend.
• The breakout direction will determine the long-term price outlook.

Since hitting a low of $3.50 on January 26, RENDER has undergone a sharp rally, peaking at an all-time high of nearly $14 on March 17.

Following this surge, the price entered a corrective phase, characterized by a descending triangle and subsequent formation of an ascending channel.

Despite some recoveries, RENDER remains in a broader downtrend, with the possibility of further downside or a potential bullish breakout depending on key resistance levels.

RENDER Price Analysis

Since reaching a low of $3.50 on January 26, RENDER has undergone a parabolic rise, peaking at an all-time high of nearly $14 on March 17.

The wave structure analysis indicates that RENDER was in the final phase of a larger five-wave impulse.

This was confirmed by a subsequent drop to $6.50 on April 13, signaling the start of a corrective phase. An initial target of $7 was met, followed by a bounce to $11.50 on May 13.

However, RENDER faced another downturn, hitting a lower low of $3.40 on Aug. 5 on the daily chart wick but closing at $4.

Since its all-time high, the price has formed a descending triangle with a three-wave decline. This typically signals a corrective structure, and with the price breaking above it, forming an ascending channel, there is a chance a new bullish phase began. 

On Sept. 29, RENDER rose to $6.70 but fell sharply to $5. It is now yet again on the ascending channel’s support. Despite a recent recovery, RENDER remains in a broader downtrend.

A breakout above the ascending resistance would indicate the potential start of a bullish phase. However, until that breakout occurs, further downside is possible because the ascending channel’s structure didn’t provide a clear five-wave pattern. 

RENDER Price Prediction

Analyzing the wave structure inside the ascending channel, we see that this is likely a corrective pattern.

Although a bounce would be expected for its next move, it could be a corrective ABC as the third one in the sequence from Aug. 5, retesting the ascending resistance for the third time.

If RENDER reaches $7 and is rejected, another strong downtrend could develop, leading to lower values than Aug. 5.

According to this count, a triple ABC correction sequence will be the second wave X from the WXYXZ correction since March, and its final move to the downside will be wave Z. 

However, with multiple scenarios possible, the breakout direction from the ascending channel will determine the primary outlook.