Source: AZ
Crypto traders and investors who have been watching the crypto token named REN have started to notice a pattern emerge on the charts. Known commonly as head and shoulders, the market action of the coin indicates a possibly bearish future for the short to mid-term. This trend follows a series of volatile movements on the market as the cryptocurrency world gears up for yet another year of a massive movement.
Ren (REN) is an Ethereum-based token that operates and powers an open protocol that makes transferring cryptocurrencies between blockchains possible. The crypto-token brings assets such as Bitcoin and Zcash to blockchains and allows these assets to participate in multi-chain decentralized finance ecosystems. Powered by a network of machines known commonly as Darknodes, the decentralized system brings rewards and incentives mainly by contributing computing power and storage space. The total value locked of the digital assets minted on all chains by RenVM has risen to $1.05 billion, a massive rise from the $6.6 million level it was at last June 2021. The assets on its chain include blockchain tokens and coins like which includes Ethereum, Binance Smart Chain, Solana, Polygon, Fantom, Avalanche, and Arbitrum,
The latest trend in REN’s price movement began around the middle of December 2021 after the tag rose and declined in a trough to form a left shoulder. Then, the coin would rebound rapidly to create a higher peak, only to fall again. Recently, the price has rebounded and begun forming a right shoulder. Experts speculate that this could continue for the next few months. REN’s pattern now follows when the token price falls below a neckline during a correction to form a right shoulder. This pattern prompts traders to create short entries once the price falls below the neckline. The upward-sloping head and shoulder pattern with a rising neckline support is something traders have seen numerous times and could indicate a bearish outlook for the token.
But these chart readings only interpret a possibility and one that could last in the short to mid-term. Over the long term, REN’s still has a giant symmetrical triangle shape, suggesting that the correction towards the $0.30 mark could signal an uptrend towards the $1.20 levels. In addition, the transaction volume for RenVM has reached an all-time high, reaching $8.89 billion on January 4, 2022. These indicators seem to show a positive outlook for REN over the years to come.
Ren’s system became a headliner during the past few years after decentralized finance and technology thought leaders noted the ingenuity in its design. In principle, the token takes out resistance between blockchain networks to extend the decentralized ecosystem’s interoperability. In other words, it allows users to seamlessly swap tokens between two blockchains, taking out several steps from the process through the Ren Virtual Machine operating out of the Darknodes. For most of 2021, the token has been on a lean run, with more reds than greens, but some rallies have shown hope of a bright future for the coin.
Current predictions show a downside target of $0.30, roughly half the current value of $0.59. The coin’s highest price to date has been $1.85, which happened on February 20, 2021.
