Rendering increased 16.55% in a day and 24% in a week, according to CoinMarketCap data. It’s a great start to the new year, which also saw Bitcoin (BTC) dominance fall from 59.61% to 59.21%.
This drop, although minor, suggests a potential rebound in the altcoin market. Investors should not expect a new season, but can be a little more optimistic about tokens that show relative strength compared to the market as a whole.
Render (RENDER) is one of these tokens. It is one of the leading AI tokens by market capitalization, and the AI and Big Data sector has recently received increased attention.
The market capitalization of the AI sector in crypto has grown from $16.63 billion in early January to $18.96 billion at the time of writing.
This is 14% growth in the sector in a week, highlighting capital flows into this market. Should Render investors buy more to take advantage of this increased attention?
Long-term rendering trend was not encouraging
Source: RENDER/USDT on TradingView
The one-week chart shows that the decentralized GPU computing platform token is deep in a bear market. It is too early to tell if the market has bottomed. It found support at $1.32, a support level previously tested in September 2023.
Therefore, the price rebound was likely minor. To the north, the $2.82 level coincided with a local high that was very likely to cut short further gains.
The risks of switching to a bullish bias
Bitcoin (BTC) was still trading below the key local resistance at $94.5k.
The Render rally took place on a weekend, which has generally reduced available liquidity and prices can rise more easily. The 34% increase in Open Interest is a sign of speculative interest, which could lead to greater volatility in the short term.
Trader Call to Action: Time to Get Short-Term Bullish
The decline in Bitcoin dominance and the increase in the altcoin’s market cap were small signs of short-term strength. It is unclear whether this will be sustainable, but traders should be open to the possibility.
Source: RENDER/USDT on TradingView
Right now, already long Render traders could look to take profits and wait for a pullback to $1.50 buy. Data from Santiment showed that the recent rally did not see significant on-chain token movements, signaling profit-taking activity.
Therefore, a break beyond local resistance at $1.90 and a retest would also present a buying opportunity.
Final Thoughts
- There was a good chance that the AI sector in crypto, including Render, would continue to show an upward trend in the following week.
- A break past local resistance at $1.90 could give Render bulls a buying opportunity targeting $2.82.
Disclaimer: The information presented does not constitute financial, investment, business or other advice and represents the opinion of the author only.
