- Bitcoin dropped over 5% below $100,000 amid global financial pullbacks possibly linked to China's Deep Seek AI Model unveiling, which has sparked fears over U.S. technological competitiveness.
- AI tokens RENDER and NEAR experienced significant declines of 14% and 11% respectively, but both are showing resilience at key support levels within falling wedge patterns.
- RENDER bounced from $5.80 support and trades at $5.98, while NEAR stabilized at $4.43 after retesting $4.40 support, with both potentially targeting their 200-day SMA resistance levels.
- BTC dominance is forming a bearish rising wedge pattern at 59.34%, and if it declines toward lower support, it could create room for altcoins like RENDER and NEAR to recover.
Date: Mon, Jan 27, 2025, 12:33 PM GMT
The cryptocurrency market is facing notable turbulence today, with Bitcoin (BTC) experiencing a sharp decline of over 5%, dropping below the $100,000 mark. This downturn coincides with global financial pullbacks, possibly linked to the unveiling of China’s Deep Seek AI Model. The model, which reportedly operates on reduced-capability chips, has sparked fears over U.S. technological competitiveness, further unsettling the market.
Amid this broader market slump, AI-focused tokens Render (RENDER) and Near Protocol (NEAR) have seen significant losses. RENDER has plummeted by 14%, while NEAR is down by 11%.
Both tokens, however, are showing signs of resilience at key support levels, raising questions about the potential for a rebound.
Render (RENDER)
On the daily chart, RENDER is consolidating within a falling wedge pattern, a structure that often precedes bullish breakouts. The token faced a rejection at the upper resistance of $8.20 and broke below its 50-day Simple Moving Average (SMA), leading to a retest of the critical wedge support.
After touching the support trendline at $5.80, RENDER has shown strength, bouncing back slightly and currently trading at $5.98. If this support level holds, RENDER could target its 200-day SMA resistance as the first obstacle, followed by the upper resistance of the wedge, signaling potential recovery.
Near Protocol (NEAR)
Similarly, NEAR is consolidating within a falling wedge pattern on the daily chart. The token recently faced rejection at $5.65, breaking below its 100-day SMA. This downward momentum pushed NEAR to retest its wedge support at $4.40.
Despite the sharp decline, NEAR has managed to stabilize and is trading slightly higher at $4.43. If the bounce from this level continues, NEAR could aim for its 200-day SMA resistance, followed by the wedge’s upper boundary, setting the stage for a potential breakout.
Is A Rebound Ahead?
Both RENDER and NEAR are showing resilience at critical support levels, suggesting that a rebound could be on the horizon. However, the broader market, particularly Bitcoin dominance, will play a crucial role in determining the next moves for these tokens.
BTC Dominance Analysis
On the 4-hour chart, BTC dominance is forming a rising wedge, a bearish pattern that often results in breakdowns. Dominance recently peaked at 59.58% but faced rejection and is now slightly lower at 59.34%.
If BTC dominance continues to decline toward the wedge’s lower support, it could create room for altcoins like RENDER and NEAR to recover. A significant recovery rally could follow if this pattern holds.
Conclusion
While the current market conditions remain uncertain, both RENDER and NEAR are at critical junctures. Traders should keep an eye on their respective support levels and monitor Bitcoin dominance for cues about a potential market shift.
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