Render price trades within a supply zone, risks a 20% fall unless this happens
|- Render price is confronting a formidable supply barrier that continues to threaten its upside potential after a 165% climb.
- RNDR could drop 20% to the $2.825 support level amid selling pressure from this zone.
- The bearish thesis will be invalidated price the price breaks and closes above $3.725, flipping the zone to a bullish breaker.
Render (RNDR) price is trading with a bullish bias, boasting a stark 165% climb beginning early September. However, this rally could be running out of steam as the peer-to-peer (P2P) network of connected graphic processing units confronts a formidable supply barrier.
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Render price risks a 20% fall
Render (RNDR) price has been trading within a supply zone for almost three weeks now, beginning November 18. Based on technical indicators RNDR is massively overbought with the Relative Strength Index (RSI) at 74, hinting at a possible correction.
Meanwhile, the supply zone extending from $3.158 to $3.725 continues to impose overhead pressure on Render price. It could precipitate a 20% fall to the $2.825 support level.
Further south, the slump could extend lower for RNDR market value to hit $2.238, or worse, fall below the ascending trendline to bring the $1.317 swing low into focus.
RNDR/USDT 3-day chart
On the flip side, increased buying pressure could see Render price overcome the supply zone to record a candlestick close above the $3.725 resistance level.
It is imperative that Render price breaks and closes above the upper boundary of the supply zone at $3.725 lest the 20% fall becomes imminent. Such a move, where Render price overcomes the $3,725 roadblock, would see the supply zone flipped to a bullish breaker.
It would also mark the invalidation of the bearish thesis and set the tone for RNDR market value to hit the $4.150 resistance level. In a highly bullish case, the token could extend a neck higher towards the $4.607 range high, standing almost 30% above current levels, perhaps even pitching a santa rally.
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