REZ has formed a falling wedge pattern, a structure often signaling a potential bullish breakout.
A confirmed breakout could push REZ toward $0.02279, implying an estimated 53% upside from current levels.
Despite a $969M TVL, REZ’s market cap remains low at $41.41M, with a market cap/TVL ratio of 0.0428.
A narrowing downtrend and historically low trading range have placed the Renzo protocol’s native token, REZ, in a technical position that traders believe could precede a potential breakout. As shown on the daily chart, REZ has been trading within a descending wedge pattern, a formation often interpreted by analysts as a potential reversal structure. The wedge, which has gradually compressed price action over the past several months, indicates decreasing volatility and tightening investor sentiment.
Technical Breakdown and Current Structure
According to chart data, REZ has been trending downward since its previous peak near $0.025, with lower highs consistently forming resistance around a descending trendline. Concurrently, the token has found support along a relatively stable horizontal base just below $0.013. The structure has taken shape since late November 2023, forming a clearly defined falling wedge — a setup that some technical traders associate with bullish reversals, especially when combined with rising volume near the lower bound.
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The breakout projection from the wedge, if validated, targets a price level of approximately $0.02279. This represents a potential upside of around 53.29% from current levels. However, this projection remains speculative until a confirmed break and close above the upper trendline occur on significant volume.
Market Overview and Supply Metrics
According to CoinMarketCap data, REZ is trading at $0.01470, registering a 4.43% gain on the day. The current market cap stands at $41.41 million, while daily trading volume is reported at $22 million, down 13.05% in the last 24 hours. The total and maximum supply is 10 billion REZ, with 52,890 holders currently recorded.
Source: CoinMarketCap
The token's market cap to TVL ratio currently stands at just 0.0428, while the protocol has over $969 million locked in total value. This metric could indicate undervaluation in relation to the platform’s locked assets, though the figure should be weighed against usage patterns and broader market sentiment.
Outlook and Considerations
While the chart structure implies potential upward movement, analysts have cautioned against drawing conclusions without broader confirmation. Price movement outside the descending wedge could trigger renewed volatility in either direction. Until then, REZ remains within its technical boundaries, with traders closely watching for decisive momentum to develop.
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