RENDER Price Surges 85% Amid AI Sector Growth: Potential Risks Ahead

RENDER Price Climbs 85% in a Week, Leading AI Sector Gains

In the past seven days, RENDER price has soared nearly 85%, positioning itself as a major contributor to the AI sector's strength, which saw an 18% rise. RENDER's rapid ascent has attracted attention, but a deeper analysis reveals potential challenges.

Rising RENDER Price Faces Persistent Bearish Structure

Despite the rally, RENDER remains within a descending channel formed since early October. This suggests sellers still dominate the broader trend. Recent attempts to break this channel have failed, as indicated by candles with long upper wicks, showing seller resistance at key levels.

Capital flow analysis shows the rally was not weak. The Chaikin Money Flow (CMF) indicator, which reflects capital movement, trended higher even as RENDER declined between October and January. However, while CMF broke above zero during the rally, it wasn't enough to breach the bearish channel.

Buying Pressure Declines as Momentum Weakens

A shift in exchange flow balance highlights a new risk layer. RENDER exchange outflows plummeted by 76% in 24 hours, indicating reduced buying pressure. Concurrently, the Relative Strength Index (RSI) signals a hidden bearish divergence, suggesting weakening momentum despite price gains.

Key RENDER Price Levels to Watch

The future path of RENDER largely depends on price levels rather than indicators. A daily close above $2.56 could break the descending channel, paving the way to $2.93 and potentially reversing the bearish trend. If bearish signals persist, support near $2.05 could lead to a 14% pullback, with deeper corrections possible.

While RENDER has significantly driven the AI rally, its charts indicate a critical test. Capital flow initiated the rally; now, sustained momentum and demand are necessary to overcome the trend constraints.