RNDR Declines as Foundation Covers Token Upgrade Costs

In a move to incentivize token migration, the Render Foundation has announced that it will cover gas fees for holders of the RNDR token who choose to upgrade to the new RENDER token on the Solana blockchain. This follows the network’s successful migration from Ethereum to Solana in November 2023.

The Render Network Foundation is covering gas fees for those that choose to upgrade RNDR to RENDER until Wednesday, January 31, 2024. https://t.co/iqBE6QEQII

Have questions about the upgrade? Find answers on the Foundation website: https://t.co/7TtzBv9Ejq

— The Render Network (@rendernetwork) January 2, 2024

In an announcement blog post, the foundation noted that token holders who upgrade their RNDR to RENDER are eligible for incentives, with 1.14 million RENDER set aside for this purpose.

Following the network’s migration to the Solana network last November, its RNDR token benefited from SOL’s significant rally. Exchanging hands at $4.73 at press time, the token’s value rallied by 32% in the last month, according to data from CoinMarketCap. However, with a price consolidation witnessed in the last week, RNDR’s value has recorded a slight pullback. In the last week, its price has declined by 6%.

The price decline has been due to a surge in liquidity outflow from the RNDR market. Readings from the Chaikin Money Flow (CMF) showed that it crossed below the zero line on December 31 and has since trended downward. At press time, RNDR’s CMF was -0.11. A CMF value below zero is a sign of weakness, as it suggests capital exit as more investors “dump” an asset.

RNDR/USDT Daily Chart (Source: TradingView)

The decline in RNDR’s CMF coincided with a bearish crossover of its MACD line with its trend line. Posting only red histogram bars in the past six days, the token’s MACD indicator showed that sell-offs continue to exceed accumulation.

Further, confirming the decline in bullish momentum, RNDR’s Aroon Up Line (Orange) was 42.86% at the time of writing. The Aroon indicator is used to identify trend strength and potential trend reversal points in a crypto asset’s price movement. Conversely, when the Aroon Up line is close to zero, the uptrend is weak, and the most recent high was reached a long time ago.

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