Render (RENDER) Price Prediction: Token May Revisit 7-Month Low

The price of the leading artificial intelligence-based token, Render (RENDER), has plummeted 25% over the past week. While a key on-chain metric suggests

The price of Render (CRYPTO: RENDER) dropped 25% during the past seven days. While an important on-chain metric suggests that this could be a good time to buy the altcoin, its price still runs the risk of falling further.

Here's what happened

At the time of writing, RENDER was trading at $4.62. During Monday's market downturn, the altcoin fell to a seven-month low of $4.14.

According to RENDER's market value to realized value (MVRV) ratio, now could be a good time to buy the altcoin as it's currently undervalued. This is confirmed by the negative values of the ratio, when assessed over different moving averages. Per Santiment, RENDER's 30-day and 90-day MVRV ratios are -9.47 and -25.79, respectively.

The metric measures the ratio between an asset's current price and the average price at which all its coins or tokens were last acquired. When its value is positive, the asset's market value is higher than the cost basis for most investors. In this case, the token is overvalued, and coin holders may sell for a profit.

On the other hand, an MVRV ratio below zero indicates that the asset's market value is less than the average purchase price of all its circulating tokens, signaling that it is undervalued.

An asset with a negative MVRV ratio presents a good buying opportunity, as it connotes that the asset is trading at a lower price. This allows traders to accumulate it, hoping to sell it at a higher price later.

Price below 20-day EMA and 50-day SMA, downtrend to continue?

However, RENDER's price action on a daily chart hinted at the continuation of its downtrend in the short term. At its current price, RENDER was trading below its 20-day exponential moving average (EMA) (blue line) and its 50-day small moving average (SMA) (yellow line).

An asset's 20-day EMA is a short-term moving average that quickly reacts to price changes. It reflects the average closing price of an asset over the past 20 days.

The 50-day SMA, on the other hand, is a longer-term moving average that reflects an asset's average closing price over the past 50 days.

When an asset trades below these moving averages, it indicates that its price has declined over both short- and medium-term periods. This bearish trend is seen by traders as a signal to sell or avoid buying until the asset shows signs of recovery above these moving averages.

Also, note that RENDER's Relative Strength Index (RSI) was trending down at 31.36 at press time. This indicator measures an asset's overbought and oversold market conditions. At 31.36, RENDER's RSI confirmed a decline in buying activity.

RENDER price prediction: Token may revisit 7-month low

The further demand for RENDER dries up, the more it runs the risk of devaluation. Once it sheds its gains of the past 24 hours, the altcoin will revisit its seven-month low of $4.14 and may even fall below it to trade at $3.41.

However, if more traders begin to “buy the dip” and RENDER accumulation steadies, its price may climb to $5.87.