The Render Token jumped to the highest level since June 9th as demand for the coin rose. RNDR rose to a high of $0.6625, which was 156% above the lowest level this month. Its market cap has risen to over $156 million.
What is Render Token and why is it rising?
Render is a blockchain project that is helping developers lower the cost of building applications. Its concept is to connect artists and media creators with distributed graphic processing units (GPUs).
These distributed GPUs can be processed on a peer-to-peer network, making the transactional process of rendering and streaming 3D environments cheaper and easier for end-users. According to the network’s founder:
“The RNDR Token, powered by the blockchain, uses the act of creation – rendered by the laws of physics and light – to open the door to a new model of value exchange and a truly decentralized Metaverse.”
Render Token is growing in popularity among creators and developers. Some of the top partners for the network are Decentraland, SiaCoin, Algorand, and Basic Attention Token (BAT). It is also used widely by many NFT artists who don’t have access to expensive GPUs amid the chip shortage.
It is unclear why the RNDR token price has jumped sharply today. According to Binance, it has risen by over 17% in the past 24 hours, making it the 6th top performer after STRAX, USTC, HIVE, LUNC, and AST.
The rebound is mostly because of investors who are buying the dip in the token. Another possible reason is the fear of missing out (FOMO) among retail traders who believe that it has become incredibly cheap.
Another possible reason is that the coin is being pumped as we have seen with many cryptocurrencies like Spell, YFII, and TrueFi among others.
RNDR price prediction
The four-hour chart shows that the RNDR price has made a strong rebound in the past few days. The coin rose to a high of $0.6625, which was the highest level since June 9th. On the four-hour chart, Render managed to move above the 25-day and 50-day moving averages. It has also formed an inverted head and shoulders pattern.
Therefore, since this pattern is usually a sign of reversal, there is a likelihood that the coin will keep rising as investors target the key resistance at $0.80, which is about 35% above the current level. On the flip side, a drop below the support at $0.500 will invalidate the bullish view.