The price of leading artificial intelligence-based token Render (RENDER) has trended within a horizontal channel since the beginning of July.
However, with demand for the token plummeting dramatically in the past week, there is a possibility that its price will fall below support.
Render Witnesses Increased Distribution
An asset trends within a horizontal channel when its price consolidates within a range for some time. This happens when there is a relative balance between buying and selling pressures, preventing its price from trending strongly in either direction.
The upper line of this channel forms resistance, while the lower line forms support. Since its price began to move sideways at the beginning of July, RENDER has faced resistance at $7.20 and has found support at $5.70.
However, RENDER risks falling to the support level and potentially below it as selling pressure begins to outweigh accumulation. On-chain data from IntoTheBlock shows that the token’s daily active and new address count has significantly declined this past week.
Read More: How To Buy Render Token (RENDER) and Everything You Need To Know
According to the on-chain data provider, the count of unique addresses that have completed at least one transaction involving RENDER has plummeted by 84% in the past seven days.
Likewise, the number of new addresses created to trade the altcoin during the review period has dropped by 77%.
When an asset witnesses a decline in its daily active and new address count, it reflects a broader bearish sentiment or a temporary decline in market interest. This is known to impact an asset’s price negatively.
Further, RENDER whales have reduced their risk exposure in the past week. During that period, the token’s large holders’ netflow has dropped by 99%.
Large holders refer to addresses that hold over 0.1% of an asset’s circulating supply. An asset’s large holder netflow measures the difference between the coins these investors buy and the amount they sell over a specific period.
When it declines, it indicates that an asset’s whale addresses are selling their holdings. It suggests a spike in selling pressure from its large holders and is often an indicator of a potential price decline .
RENDER Price Prediction: Rally Above Resistance or Drop Below Support Likely
If selling pressure gains momentum, it will push RENDER’s price toward its support level and potentially below it. The token’s price may fall to $5.66.
Read More: Render Token (RENDER) Price Prediction 2024/2025/2030
On the other hand, if accumulation increases, the current trend may correct course, and RENDER’s price may climb to $7.45 above resistance .
