{"id":389675,"date":"2022-01-05T04:30:00","date_gmt":"2022-01-05T01:30:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/ren-price-at-risk-of-50-drop-after-a-bearish-trading-pattern-shows-up\/"},"modified":"2022-01-05T04:30:00","modified_gmt":"2022-01-05T01:30:00","slug":"ren-price-at-risk-of-50-drop-after-a-bearish-trading-pattern-shows-up","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/ren-price-at-risk-of-50-drop-after-a-bearish-trading-pattern-shows-up\/","title":{"rendered":"# REN price at risk of 50% drop after a bearish trading pattern shows up"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a40afdd34caa\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a40afdd34caa\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/ren-price-at-risk-of-50-drop-after-a-bearish-trading-pattern-shows-up\/#Whats_behind_RENs_current_setup\" >What&#8217;s behind REN&#8217;s current setup?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/ren-price-at-risk-of-50-drop-after-a-bearish-trading-pattern-shows-up\/#The_long-term_outlook_is_still_bullish\" >The long-term outlook is still bullish<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># REN price at risk of 50% drop after a bearish trading pattern shows up <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef>The prospects of Ren (REN) continuing its ongoing rebound to fresh highs <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ear slim as a classic bearish reversal pattern begins to emerge.<\/p>\n<p>Dubbed head and shoulders, the setup appears when the price forms three peaks, with the middle peak (called the head) longer than the other two peaks described as the left and right shoulders. The bottoms of these peaks are supported by a neckline.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-01\/864deecf-d2a0-491d-97c4-15e9978fea6b.png\"><figcaption style=\"text-align: center;\"><em>An illustration of the head and shoulders pattern. Source: Corporate Finance Institute<\/em><\/figcaption><\/figure>\n<p>The pattern comes into play primarily when the price breaks below the neckline in a correction that follows the formation of the right shoulder. That prompts traders to open short entries below the neckline, with their ideal target at a length equal to the distance between the head&#8217;s high point and the neckline.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Whats_behind_RENs_current_setup\"><\/span>What&#8217;s behind REN&#8217;s current setup?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>REN has been forming what appears to be an upward sloping head and shoulder pattern, supported by a rising neckline.<\/p>\n<p>In detail, REN price rose and declined into a trough around mid-December 2021, forming the left shoulder. Later, it rebounded sharply to create a higher peak \u2014 above the highest level of the first shoulder \u2014 and then fell all over again. <\/p>\n<p>REN has since rebounded again and is now in the process of forming its right shoulder, as shown in the chart below.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-01\/3af4cdff-9c82-4f60-94ec-69c9177e1788.png\"><figcaption style=\"text-align: center;\"><em>REN\/USD daily price chart featuring H&amp;S setup. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>As a result, the\u00a0price of REN\u00a0may continue its rebound until it completes its right shoulder formation, which could be near the 50-day exponential moving average; the velvet wave, near $0.67. That is because of the wave&#8217;s recent history of limiting REN&#8217;s price rebounds.<\/p>\n<p>Additional sell pressure could also come from the 0.618 Fib line near $0.633 due to its historical relevance as both support and resistance. Overall, a pullback looks likely to happen that would have REN make the right shoulder.\u00a0Meanwhile, a correction towards the neckline, followed by a break below it, would confirm the head and shoulder setup.<\/p>\n<p>In doing so, the move may shift REN&#8217;s downside target to $0.30, measured after adding the distance between the head&#8217;s high and the neckline to the breakout point. That is around 50% below the current trading price at $0.59.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_long-term_outlook_is_still_bullish\"><\/span>The long-term outlook is still bullish<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>REN&#8217;s head and shoulder setup comes as a part of a wider price correction that has seen the token shed nearly 70% of its value from a record high near $1.92 in Feb. 2021.<\/p>\n<p>On a longer-timeframe chart, REN appears to have been only consolidating inside a giant <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.investopedia.com\/terms\/s\/symmetricaltriangle.asp\">symmetrical triangle<\/a>, suggesting that its correction toward $0.30 may end up causing a rebound toward $1.20.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-01\/96dacca1-ba9a-42e6-9344-aa3be5c58392.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>REN\/USD weekly price chart featuring a symmetrical triangle. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>Bullish cues for REN may also come from the growth of its backer of the same name. Ren&#8217;s core product, RenVM, brings interoperability to the\u00a0decentralized finance\u00a0ecosystem (DeFi). It holds users&#8217; digital assets as they move between blockchains\u00a0using zero-knowledge proofs over an sMPC based protocol.<\/p>\n<p><strong><em>Related:\u00a03 reasons why REN price is up 340% from its July swing low<\/em><\/strong><\/p>\n<p>REN acts as a bond to run the so-called Darknodes that power RenVM&#8217;s sMPC network. Those who deposit 100,000 REN are able to run these Darknodes and as a result, are able to earn rewards in Bitcoin (BTC), Ether (ETH), Zcash (ZEC), and other tokens.<\/p>\n<p>The <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/mainnet.renproject.io\/\">total value locked<\/a> (TVL) of the digital assets minted on all chains\u00a0\u2014 which includes Ethereum, Binance Smart Chain, Solana, Polygon, Fantom, Avalanche, and Arbitrum \u2014 by RenVM came out to be $1.05 billion at press time compared to $6.6 million in June 2021. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-01\/fa58ec19-9937-4332-85ef-5ab137c90c40.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Multi-year history of volume and total value locked in RenVM. Source:\u00a0Highcharts.com<\/em><\/figcaption><\/figure>\n<p>Meanwhile, the total amount of volume transacting through RenVM on all chains reached an all-time high of $8.89 billion on January 4th, 2022. That shows a steady increase in the Ren network&#8217;s adoption, thus boosting the upside prospects of REN token.<\/p>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/p>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/ren-price-at-risk-of-50-drop-after-a-bearish-trading-pattern-shows-up\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# REN price at risk of 50% drop after a bearish trading pattern shows up &#8221; The prospects of Ren (REN) continuing its ongoing rebound to fresh highs appear slim as a classic bearish reversal pattern begins to emerge. Dubbed head and shoulders, the setup appears when the price forms three peaks, with the middle&#8230;<\/p>\n","protected":false},"author":1,"featured_media":389676,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDEvOTRiNThjYjItYjBmMC00ZjdlLWFhODEtMzA1MzA4OGM5MWNmLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,88119,79806,81262,95119,74939,75150,76216,75164,74876,90505,78261,73785],"class_list":["post-389675","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-altcoin-watch","tag-analysis","tag-cryptomarket","tag-layer2","tag-market-analysis","tag-market-update","tag-nodes","tag-price-analysis","tag-proof-of-stake","tag-ren","tag-tech-analysis","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/389675","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=389675"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/389675\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/389676"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=389675"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=389675"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=389675"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}