RENDER rallies 17% to 5-month high as AI tokens heat up – More gains ahead IF…

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RENDER rallies 17% to 5-month high as AI tokens heat up – More gains ahead IF…

Such a jump in both OI and Volume showed increased market activity, with new positions being opened either long or short.

Meanwhile, RENDERs Long/Short Ratio rose to 1.8, with longs accounting for 64% of the total positions. This suggests that traders were bullish and opened long positions in anticipation of further gains.

Source: CoinalyzeProfit taking surges, threatening the rally.

As RENDER jumped to a five-month high, investors, especially short-term holders, saw their profit margins expand. In fact, the MVRV Long/Short Difference metric dropped to a monthly low of -40%.

Source: Santiment

The metric is in negative territory, suggesting that recent buyers are currently enjoying higher profits. At the same time, long-term holders have yet to recover profitability.

This rising profit margin pushed some to cash out. CoinGlass data showed a positive Spot Netflow, which remained positive for over a week.

Source: CoinGlass

At press time, Spot Netflow sat at around $2.3 million, with $30 million flowing out compared to $32 million flowing in. This suggests that sellers were active in the market; higher seller dominance often precedes a weakened market.

Can the upside hold？

With RENDERs upside momentum remaining strong despite profit-taking, it is bolstered by high network usage and market-wide speculative demand.

The altcoin‘s Relative Strength Index (RSI) jumped to 74, indicating strong upside with buyers enjoying total market control. At the same time, the Momentum Index rose to 0.5, further confirming the trend’s strength.

Source: TradingView

Taken together, these two indicators suggest bulls have control of the market, a recipe for continued upside.

Thus, if the market conditions hold, RENDER will clear $2.7 resistance and eye $3. If the market faces rejection at the current level, a drop to $1.8 will follow.