Render has rallied 16.55% in a day and 24% in a week, according to CoinMarketCap data. That is an excellent start to the new year, which has also seen the Bitcoin [BTC] Dominance fall from 59.61% to 59.21%.
This drop, though minor, suggests a potential altcoin market rebound. Investors should not expect an altseason, but can be a little more optimistic about tokens that show relative strength when compared to the wider market.
Render [RENDER] is one such token. It is one of the leading AI tokens by market cap, and the AI and big data sector has witnessed increased attention recently.
The market cap of the AI sector in crypto has grown from $16.63 billion at the start of January to $18.96 billion at the time of writing.
This was a 14% growth in the sector within a week, highlighting capital flows into this market. Should Render investors buy more to profit from the increased attention?
Long-term Render trend was not encouraging
The 1-week chart illustrated that the decentralized GPU compute platform token was in the depths of a bear market. It is too early to say if the market has reached a bottom. It has found support at $1.32, a support level previously tested in September 2023.
Therefore, the price bounce was likely to be minor. To the north, the $2.82 level coincided with a local swing high that was highly likely to cut short further gains.
The risks of shifting to a bullish bias
Bitcoin [BTC] was still trading below the $94.5k key local resistance.
The Render rally came on a weekend, which generally has reduced liquidity available, and prices can pump more easily. The 34% increase in Open Interest was a sign of speculative interest, which could induce higher short-term volatility.
Traders’ call to action- Time to turn short-term bullish
The dropping Bitcoin Dominance and the rising altcoin market cap were small, short-term signs of strength. It was unclear if it was sustainable, but traders should be open to the possibility.
Right now, Render traders already in long positions could look to take profits and wait for a pullback to $1.50 buy. Santiment data showed that the recent rally did not see sizeable onchain token movements, which signal profit-taking activity.
Therefore, a breakout past the local $1.90 resistance and a retest would also present a buying opportunity.
Final Thoughts
- There was a good chance that the AI sector in crypto, including Render, would continue to trend higher in the following week.
- A breakout past the $1.90 local resistance could give Render bulls a buying opportunity targeting $2.82.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
