Render challenges $4.4 resistance: Will bulls reach $7 or fall back?

• Render bulls challenged the $4.4 resistance level, aiming for a breakout toward $7.
• The distribution trends and lack of development activity were warning signs.

In a post on X last week, user Bitcoinsensus noted that Render [RENDER] was set to climb higher from the $3 demand zone.

A reclamation of the $4.4 could set up a breakout beyond $7 and present a buying opportunity, as noted in the attached chart.

Source: Bitcoinsensus on X

The massive retracement in 2024 and 2025 was seen as part of the bullish pennant that the altcoin has formed. A move beyond $7 would signal a breakout past this pennant, making the previous high at $13 a target.

The $4.4 resistance level was being challenged at press time. If it were flipped to support, should traders and investors buy more RENDER?

Warning signs from Render

Source: Santiment

The development activity behind the decentralized GPU-based rendering solutions provider was negligible, according to Santiment data.

This was a major concern for investors, as it signaled fewer improvements and patches for the network.

The 7-day RSI was at 50, signaling a bullish momentum shift. The social volume has slowly increased over the past month. However, this was not indicative of a RENDER rally by itself.

Source: Santiment

Another sign of worry came from the network value metrics. The mean coin age has been dropping rapidly in the past three months and was at a level last seen in August 2024.

The falling mean coin age indicated that older coins were spent or moved, a sign of selling pressure from holders.

The price bounce in the past two weeks took the 90-day MVRV above zero. This showed that medium-term holders were at a slight profit, but also underlined a strong distribution trend.

Together, it did not present a buy signal.

The daily active addresses metric has also been in a downtrend since November 2024. The recent price surge did not come alongside a surge in network activity.

Therefore, there was a good chance that the price bounce might falter, giving holders a chance to exit their positions.

Technical analysis highlighted the importance of the $4.4 resistance.

Yet, the lack of network participation, as well as the distribution phase of the past three months, meant that investors should be careful if they want to bid on RENDER.