Render (RENDER) Token Price Drops 70% to Its Lowest Level Since November 2023

On Tuesday, March 4, the Render (RENDER) token price dropped to $3.44, marking a 70% plunge from its all-time high.

The Render (RENDER) token price has dropped to its lowest level since November 2023, and it could be setting up for a rebound if history repeats.

Key Takeaways:

Render token price dropped to a 19-month low earlier this week.

On-chain data reveals that the token could face challenges as it attempts to trade higher.

The MVRV Long/Short Difference is a useful indicator for determining when the cycle has switched to a bull phase or slumped into a bear market.

For the past seven months, the Render token price has lost more than 70% of its all-time high, dropping to as low as $3.44 earlier this week. This is the lowest level for the token since October 2022, the period when the 2022 bear market bottomed before recovery began.

This positions the token in a similar spot, sparking interest in whether history could repeat with a rebound, or if there is more downside ahead.

RENDER Increase Meets an Obstacle

Although the RENDER token price has recovered above $4 following an 8% hike in the last 24 hours, on-chain data shows it could face challenges as it attempts to trade higher.

One metric revealing this potential challenge is the Market Value to Realized Value (MVRV) Long/Short Difference.

According to a report by crypto analytics firm Santiment, the MVRV Long/Short Difference usually tells when the cycle has switched to a bull phase or slumped into a bear market.

When the metric is positive, it means that long-term holders have more unrealized gains than their short-term counterparts. This is typically a sign of a bullish market.

However, when the metric is negative, it means that short-term holders have more gains, which is bearish for the price.

The image above shows that the MVRV Long/Short Difference slid to the negative region mid-February at -0.167.

However, RENDER’s price may not yet have reached its bear market bottom. Historically, recoveries have begun when the metric hovered between -0.19 and -0.21.

The metric may need to drop to this range if history repeats before a full rebound kicks in.

Token Undervalued

Meanwhile, the MVRV ratio also seems to support this. The image below shows it is on the verge of breaking above the zero line.

The MVRV ratio shows whether an asset is undervalued or overvalued.

When it is extremely high, it means that there are many unrealized profits, which could trigger selling pressure. But when it is low, it means that holders might be unwilling to sell, which could be bullish.

As it stands, it is the latter for the token. Thus, if the 30-day MVRV ratio finally breaks above the zero line, the RENDER token price might trade higher in the short term.

Looking at the daily chart also supports this potential for a higher price. According to the image below, the Chaikin Money Flow (CMF) has risen above the zero signal line.

This position indicates rising accumulation, signaling that some market participants have bought the RENDER dip. Should this continue, the RENDER token price might rise much higher than $4.

Considering the Fibonacci indicator, the possible level for the price to reach could be $6.54 if buying pressure intensifies.

However, if RENDER fails to break the $5.11 resistance, the value could decline to $3.28.