Render investors and traders continue to sell, following the bearish attitude of the broader market. After weeks of continued bullish action, CoinGecko Data shows that the market has dropped a few percent, translating into losses in the altcoin market.
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While the environment has brought gains for several tokens, it has dragged several tokens, such as Render, into the ground. The latest market data shows that the latter is down on almost all time frames, with the biggest loss in the monthly period by almost 25%. This poses a big question for investors and traders whether Render will continue its downward spiral.
Big things coming to rendering
NVIDIA CEO and co-founder Jensen Huang recently spoke at SIGGRAPH 2024 about the impact of accelerated computing and generative AI on different industries. He also briefly touched on the company’s leap into computer graphics, saying it was “the best decision” the company has ever made.
Much like NVIDIA, Render’s structure as a provider of decentralized graphics and compute resources puts the platform in a unique position in the AI world. When asked about the AI revolution that began in 2022, Huang said:
“(And) this is really the revolutionary moment that we are in. Almost every industry will be affected by this, just based on some of the examples I have already given.”
This just goes to show how the broader industry is turning to support AI development, thus providing a bullish signal for investors in Render, as the latter’s nature as a provider of computing resources makes them valuable to the AI space.
Today’s key moment #SIGGRAPH2024 will be with Jensen Huang and Lauren Goode:
Q. Where do you draw the line between AI is augmenting and helping (artists) and it is replacing certain things we do?https://t.co/muYWEq586d
A. “These tools help us be more productive.…
— The Render Network (@rendernetwork) July 30, 2024
And traditional financial institutions recognize this potential at the crossroads of AI and crypto. Asset management firm Grayscale released its first decentralized AI fund earlier this month, featuring companies such as RENDER, TAO, FIL, LPT, and NEAR.
With Render providing a valuable resource for those in need of computing power, its market position remains secure despite facing substantial declines this month.
More downward pressure in the future?
In the current situation, the token’s position is quite unstable as it could push it to lower lows, following the general trend it has had since May.
If the downtrend continues, the bears could push the crypto towards January 2024 levels, wiping out the token’s year-to-date gains. Hence, the bulls should consolidate and gain control of the $6 support before any bullish attempts.
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But the token’s volatility could work in the bull’s favor. The current market environment is still largely bullish, mainly due to the fact that major cryptocurrencies are on the rise, pulling the market higher.
This greedy mood counters the bearish nature of the current market correction, placing more emphasis on long-term gains rather than short- or medium-term increases. Investors and traders should then monitor the market for long-term opportunities that will support the altcoin’s move.
Featured image from Pexels, chart from TradingView