The Render Foundation's move to cover gas fees for RNDR token holders upgrading to the new RENDER token on Solana leads to a decline in RNDR's value.
Token Upgrade Incentives
Incentives for Upgrading
The Render Foundation offers incentives for RNDR token holders upgrading to the new RENDER token on Solana, allocating 1.14 million RENDER for this purpose.
Price Movement Analysis
Initial Rally and Recent Consolidation
Following the successful migration to Solana in November 2023, RNDR initially rallied by 32%, reaching $4.73. However, recent price consolidation has led to a 6% decline in the last week.
Market Dynamics and Decline Factors
Liquidity Outflow Impact
The decline in RNDR's value is attributed to a surge in liquidity outflow from the market, indicated by the Chaikin Money Flow (CMF) crossing below zero, standing at -0.11 at press time.
MACD Indicator Confirmation
RNDR's CMF decline coincides with a bearish crossover of its MACD line and trend line. Red histogram bars over the past six days highlight continuous sell-offs surpassing accumulation.
Aroon Indicator's Insight
Confirming the bearish momentum, RNDR's Aroon Up Line is at 42.86%, indicating a weakening uptrend and a considerable time since the last high point.
While the token upgrade initiative aims to incentivize users, the current market indicators suggest a challenging period for RNDR, reflecting weakened bullish momentum and potential further downside risks.