The Graph (GRT) Price Breaks Out of Long-Term Resistance: Anticipating a Strong Rally Ahead
The Graph (GRT) price has broken above a long-term resistance zone but is showing some short-term signs of weakness. Is this weakness likely to nullify the breakout?
The Graph (GRT) price broke above a falling wedge in the week from October 30 to November 6. Since the wedge formed from the previous local high, this breakout indicates that the correction process may have concluded, and the GRT price could be ready to continue its uptrend since the beginning of 2023 (green arrow).
Indeed, the price has been gradually rising since then and broke above the significant horizontal resistance zone at $0.175 last week. This is a very bullish development as it confirms that GRT has initiated a long-term uptrend.
The weekly RSI supports the possibility of further upside as it enters the overbought zone but has not produced any bearish divergence.
Therefore, the GRT price is likely to rise to the next resistance zone at $0.32 in the near future. This figure corresponds to a 62.99% increase from the current price level.
Despite the potential for price increase on the weekly timeframe, the daily chart indicates that GRT price might undergo a correction in the coming days. This is due to the bearish divergence in the daily RSI.
This divergence occurs when the price rises, but the RSI decreases and is often followed by a correction.
However, the presence of long lower-wick candles over the past few days indicates that the bulls are actively buying on minor dips.
Therefore, the GRT price may retest the previous resistance zone at $0.175 once again before continuing the upward trend.
The most likely scenario suggests that the GRT price will continue to rise in the near future. The potential target for this movement is $0.32.
However, it may retrace to $0.175 again before continuing the upward trend. Breaking above the highest point on December 26 at $0.205 will mark the continuation of the uptrend without a correction.
The long-term bullish outlook will be invalidated if the GRT price closes the weekly candle below the $0.175 zone.
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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