Render Token had a strong start in the second quarter of 2023 with a 53% price hike in April. A critical look at the on-chain data suggests that despite increased investment in whales, the RNDR could still be undervalued at current prices. Can the bulls pay for $3?
Render (RNDR) is an ERC-20 utility token that enables artists and content creators to connect to contract operators and GPU capacity providers.
RNDR garnered media attention after performing a 400% tear in January. But after a significant rebound below $1 in March, bears feared a further correction towards the previous local low of $0.4. However, on-chain data now indicates that the RNDR looks set to ride its current rally to its highest level since a new year.
Crypto whales were purchased RNDR
A large group of whales appears to be driving the current RNDR price rally, according to data analytics platform Santiment. After the expectations were scaled back in March, whales with balances of 1 million to 10 million RNDR tokens started buying again.
The chart below shows how they increased their holdings from 198 million to 206 million tokens between April 1st and April 18th. The value of the newly added tokens is approximately $16 million at current market prices of about $2.1.
Crypto whales often have a significant impact on a token’s price prospects due to their disproportionately high buying power. Hence, as noted above, the wave of whale accumulation constitutes a bullish signal for other investors and participants in the network.
Notably, the aforementioned group has the largest share of RNDR tokens compared to other whale groups on the network. If they continue to buy, Render could face more upside in the coming days.
Similarly, the Render Network Value to Transaction Volume (NVT) ratio is another important on-chain metric and is currently flashing bullish.
Since the recent high on April 8, the RNDR NVT ratio has decreased from 765.53 to 25.38 as of April 18.
The NVT ratio usually measures the valuation of a cryptocurrency network in relation to the volume of underlying transactions. A decreasing NVT ratio indicates that the Render network is undervalued relative to its current transaction volumes.
In short, the rising wave of whale accumulation and the declining NVT ratio suggest that Render Network could gain more price momentum in the coming days.
RNDR Price Prediction: Next breakout target is $3
The break-even price distribution provided by IntoTheBlock shows that the Render token has the potential to push the current bullish rally towards $3.
The chart below shows that the RNDR could face minimal challenges until it breaks out from the $2.20 resistance area. But taking profits from 998 titles that bought 21 million Render Tokens at an average price of $2.03 could prevent that.
However, if it can break this resistance, the rally could gain momentum to reach $3. However, the 3,600 addresses that paid an average of $3.13 to acquire 91.7 million tokens could be a significant barrier.
Although the positive narrative holds, the bears can turn it around if Render loses the current price support level at $1.90. However, there is a possibility that some of the 998 addresses containing 21 million tokens could prevent the drop.
If the $1.90 support level is not held, there might be a further decline in the RNDR price towards $1.33. In such a scenario, a support of more than 4,000 addresses containing 54 million tokens may intervene.
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