Technical Analysis: The Graph (GRT) May Have Started A New Uptrend, Here Is The Next Target
The Graph (GRT) has successfully flipped the previously long-term resistance level into support, potentially starting a new uptrend.
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Creating a higher low
The Graph (GRT) had fallen below the cluster of 20-week MA-EMA since November 2021. This cluster had rejected the price many times, most recently in late October 2022 (red arrow), leading to the lowest level of $0.52 in November of the same year.
However, the price has since risen and broken above this cluster ($0.11) with a large bullish candle. This move helped push the price up to the 0.382 Fib resistance level of the decline from April 2022.
Despite being rejected, The Graph (GRT) has successfully flipped the 20-week MA-EMA cluster into support and created a higher low. This is a very important development because it shows that GRT may have started a new uptrend.
Therefore, the GRT price may continue to rise to the recent local high of $0.23 and higher to the resistance zone of $0.29-$0.35, formed by the horizontal resistance zone and Fib 0.5-0.618.
The RSI indicator supports this possibility when a significant uptrend divergence forms before the entire uptrend movement and is above 50.
Breaking above $0.23 will confirm that the trend is up.
The 4-hour chart supports the possibility of continued upside. The GRT price has rebounded from the 0.5-0.618 Fibonacci retracement support zone of the recent uptrend and formed a double bottom pattern. This is a bullish pattern that often leads to continued uptrends.
In addition, the price has also broken above a descending parallel channel formed since March 18. This indicates that the short-term correction has ended.
Therefore, GRT may continue to rise to the recent high of $0.175. Breaking above this level will help the price surge to $0.23, as mentioned above.
Overall, the most likely outlook suggests that the GRT price will continue to rise in the future. The nearest target found is $0.175 and higher to 0.23.
Breaking down below the 0.5-0.618 Fibonacci retracement support zone at $0.132-$0.14 will invalidate short-term bullish prospects, while breaking down below the 20-week MA-EMA cluster will invalidate bullish prospects.
Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information. Not Financial Advice.
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