It’s been a wild year so far for holders of Render Network’s native RNDR token. Despite starting 2023 at a modest price of $0.4008, the ERC20 token has posted an amazing 400% performance outside of the top 100 rankings, breaking above $2.00 for the first time in 10 months.
Big investors continue to jump on the bullish RNDR bandwagon. But how long will the triple-digit rally last before a correction sets in?
BeInCrypto examines the key on-chain metrics driving this impressive surge in the token’s value. And, more importantly, provide an objective forecast of RNDR token price development in the coming days.
RNDR holders do not take profits despite 4x returns
RNDR has become the second best performing altcoin in the global cryptocurrency market this year. But despite the impressive 400% performance, on-chain data shows that the top holders in the Render Network ecosystem have continued to double their long positions and anticipate a much higher price boom.
RNDR Whale Transaction Count and Social Sentiment. February 2023 Source: Santiment.net
On-chain data from Santiment shows investors are firmly braced for another positive RNDR performance in February. Whale activity, characterized by daily transaction volume exceeding $100,000, has seen a sustained increase since January 7th. During the same period, positive readings of daily weighted sentiment are also up.
Santiment compiles weighted sentiment data by tracking social media mentions of Render Network to measure social perception around the native token. Rising Whale Transaction Count and Weighted Sentiment readings have historically hinted at an imminent boom in RNDR price.
Why is the render token increasing?
In November, Render surged 50% after the Apple App Store listed OctaneRender (the mobile app that allows GPU owners to join the Render Network) and well-known payments company Revolut added the RNDR token to its platform. But this time, on-chain metrics show that the current RNDR price boom is being fueled by speculation and overall bullish social sentiment.
In the speculative markets, data provided by Coinglass shows that since February 1st, new demand has been steadily pouring into Render Network stores.
Coinglass data shows that trading in speculative RNDR derivatives tracked on top exchanges like Binance, Bybit, and CoinEX is up a staggering 500% since February 1st. This bullish signal shows RNDR attracting new demand at a rate that is currently higher than its price growth.
Open interest measures the rate at which new demand enters the market as existing investors close existing positions. Rising open interest levels are often an indication of an impending rally.
Is Render Token a good investment for this month?
Intense speculative activity in the futures derivatives markets and whale transaction volume have been the primary drivers of the RNDR’s rally over the past seven days. But the Network Value to Transactions (NVT) ratio shows that the token is far from overbought.
NVT compares the market capitalization of assets to the volume of daily transactions – similar to how price-to-earnings ratios are used in stock markets.
Compared to the 950.3 peak recorded on Jan. 2nd, RNDR’s NVT Ratio has remained persistently below 100 since mid-January. Combined with rising transaction volumes and rising open interest, the Render Network rally is likely to last through mid-February.
Conversely, the prediction markets on the top exchanges are giving dovish signals as the bears appear to be overtaking the bulls.
According to Coinglass, the long/short ratio has tipped in favor of the bears, staying below 1:1 for five consecutive days as of the end of February 7th. This requires slight caution as the long/short ratio suggests that more investors are taking additional SHORT bets against RNDR to position for an upcoming correction.
Disclaimer
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