RENDER, after surpassing a market cap of $1.2 billion, shows signs of technical overheating... the next resistance is $2.73

RENDER is currently maintaining strong momentum, but the entry into overbought territory at RSI 81 raises the possibility of short-term volatility expansion. If the trend continues, the target is the 200-day EMA at $2.73, indicating a shift in market dominance beyond ATOM and FIL. However, the expansion of high-price OI and RSI overbought conditions also imply a risk of correction.

Market Cap Surpasses $1.2 Billion, Overtaking Major Altcoins

Render Network(RENDER) recently recorded an 83.8% increase over the past 7 days, surpassing a market cap of $1.2 billion. As a decentralized GPU computing network, RENDER has established itself to outpace existing major altcoins such as Cosmos(ATOM) and Filecoin(FIL) in terms of asset size.

As of Tuesday, RENDER is trading around $2.36, having surged over 50% compared to last week, and continued its bullish trend with an additional 7% increase. The trend appears to have gained momentum after breaking through the upper boundary of the falling wedge pattern on January 2.

On-Chain Data “Fund Inflow Signal”… Trading Volume and Active Addresses Increase Together

Beyond simple price movements, indicators reflecting market participation are moving in tandem.

Trading Volume: According to Santiment, Tuesday’s volume reached $181.36 million, the highest since November 7. It has been steadily increasing since last month.

Daily Active Addresses: From 54 on December 26 to 536 on Tuesday, an approximately 10-fold increase, reaching the highest level since October 12. This is interpreted as a sign of active on-chain demand.

Futures Open Interest(OI): Futures market OI expanded from $28.9 million on Thursday to $65.89 million on Tuesday, the highest since October 17. This suggests the possibility of new capital inflows and increased buy positions.

Overall, the market is being viewed as “price increases accompanied by real participation and liquidity expansion.”

Technical Analysis: Target $2.73 if Uptrend Continues, Watch for RSI Overbought

Technically, the trend accelerated after breaking the wedge pattern on January 2. By Monday, it had risen 45%, surpassing both the 50-day EMA at $1.70 and the 100-day EMA at $2.08, and continued to rise an additional 7% on Tuesday, maintaining bullish momentum.

Bullish Scenario: If the trend persists, the next resistance target is the 200-day EMA at $2.73. The MACD has experienced a golden cross, with the green histogram expanding, supporting upward momentum.

Overbought Signal: RSI has reached 81, entering overbought territory(overbought). While indicating strong upward strength, it also presents a risk point where “a significant decline could follow a volatility spike.”

Correction Scenario: Should a correction occur, the 100-day EMA at $2.08 is identified as the first support level. A decline to this level would imply at least a 15% correction.

Currently, the market is in a zone where strong upward momentum and overbought risks coexist, making position management and loss limits crucial at this stage.