As Render Token (RNDR) Price Surges 400%, Is There More Left in the Tank?

It has been a wild year for the holders of Render Network’s native RNDR token thus far.  Despite starting 2023 at a modest $0.4008 price, outside the top 100 ranking, the ERC20 token has delivered a staggering 400% performance to break above $2.00 for the first time in 10 months. 

Large investors continue to jump on the bullish RNDR bandwagon. But how long will the triple-digit rally continue 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 projection of the RNDR token price trend in the coming days.  

RNDR Holders Don’t Take Profits Despite 4x Return 

RNDR has emerged as the second-best-performing altcoin in the global cryptocurrency market this year. But despite the impressive 400% performance, on-chain data shows that top holders in the Render Network ecosystem have continued to double down on their long positions, anticipating a much higher price boom. 

RNDR Whale transaction count and Social sentiment. Feb. 2023 Source: Santiment.net

On-chain data from Santiment shows investors are firmly primed for another positive RNDR performance in Feb. Whale activity, denoted by the daily volume of transactions above $100,000, has been on a sustained increase since Jan 7. Within the same period, positive values of daily weighted sentiment have also been on the rise. 

Santiment compiles weighted-sentiment data by tracking social media mentions of Render Network to measure the social perception surrounding the native token. Rising values of whale transaction count and weighted sentiment have historically been indicative of an impending boom in RNDR price. 

Why Is the Render Token Soaring? 

In Nov., Render surged 50% after the Apple App Store listed OctaneRender (the mobile app that enables GPU holders to participate in the Render Network), and prominent payments company Revolut added the RNDR token to its platform. But this time, on-chain metrics show that the current RNDR price boom is fuelled by speculation and overall bullish social sentiments. 

In the speculation markets, data provided by Coinglass shows that new demand has been persistently flowing into the Render Network trades since Feb 1.

RNDR Open Interest. Feb 2023. Source: Coinglass.com

Coinglass data shows that speculative RNDR derivative trades, tracked across top exchanges like Binance, Bybit, and CoinEX, have increased by a staggering 500% since Feb.1. This bullish signal shows how RNDR is attracting new demand at a rate currently higher than its price growth.

Open interest measures the rate at which new demand enters the market as existing investors close out existing positions. Rising values of open interest are often predictive of an impending rally. 

Is Render Token a Good Investment for This Month? 

The intense speculative activity in the futures derivative markets and whale transaction volumes has been the major driver of the RNDR rally in the last seven days. But the Network Value to Transactions (NVT) ratio indicates that the token is far from being overbought. 

NVT compares the market capitalization of assets to the volume of daily transactions – similar to how the Price-to-Earnings ratio is used in equity markets.

RNDR Network Value to Transactions (NVT) ratio. Feb 2023. Source: Santiment

Compared to the 950.3 peaks it recorded on Jan 2, RNDR’s NVT ratio has persistently remained below 100 since mid-Jan. Combining this with increasing transaction volumes and rising Open Interest, the Render Network rally will likely continue into mid-Feb. 

Conversely, the prediction markets on top exchanges are flashing mild-bearing signals as the bears seem to be outpacing the bulls.

Render Network LONG vs SHORT Ratio. Feb. 2023. Source: Coinglass

According to Coinglass, Long/Short ratio has tilted in favor of the bears to remain below 1:1 for five consecutive days at the close of Feb.7. This calls for mild caution as the Long/Short ratio indicates that more investors are making additional SHORT bets against RNDR, to position for an impending correction.