Downtrend Over: This Altcoin Could Surge Over 270% in the Future
The Graph (GRT) has broken out above an important resistance cluster, indicating that the long-term trend may reverse to the upside.
With the explosion of AI this year, the data field is being paid a lot of attention by many investors. As a leader in the industry of indexing and querying data from Blockchain, The Graph can benefit greatly.
MA-EMA 20-week cluster
The Graph (GRT) has been below the MA-EMA 20-week cluster since November 2021. This cluster has rejected prices many times, with the most recent being in late October 2022 (red arrow). This rejection led to the lowest level of $0.52 in November of that year.
However, the price has since risen and broken out above the MA-EMA 20-week cluster ($0.1) with a large bullish candle. This is a very important development because this cluster is often used to determine long-term trends. Therefore, this indicates that the long-term downward trend of GRT may have ended.
Further reinforcing this assertion is that price succeeded in flipping this cluster as support last week (blue arrow).
Therefore, the price of GRT may continue to rise to the recent local high of $0.23 and higher to the long-term resistance area of $0.52, marking a potential increase of over 270% from the current price level.
The RSI supports this possibility as it formed a significant bullish divergence before the entire upside move and stayed above 50.
Short-term decreasing resistance line
The 4-hour chart supports the possibility of further upward movement. GRT price has broken out above a short-term decreasing resistance line, formed from the recent local high.
This is a bullish development that shows the short-term correction process has ended. The RSI indicator bounces from oversold territory and quickly approaches overbought territory, indicating strong buying pressure at lower levels.
The next short-term resistance level to watch is $0.1450 and higher at $0.1860.
GRT/USDT 4-hour chart. Source: TradingView
Conclusion
The most likely prospect shows that GRT will continue to rise in the near future. The important levels to watch for this increase are $0.23 and higher at $0.52.
This bullish outlook will be invalidated when the price breaks below the MA-EMA 20-week cluster at the average price level of $0.1.
Read more:
- FBI Warns Of Cryptocurrency Scam Through Fake Play-To-Earn Games
- Smart Trader Earn $4.14M Within 48 Hours During USDC Depegging Event