The Graph (GRT) Price Could Increase By 75% In The Future, Here’s Why?
The price of The Graph (GRT) has bounced from the long-term support zone and broken above a significant resistance level. It may have initiated a new uptrend.
Weekly Outlook
The price of The Graph (GRT) had declined since reaching the yearly high of $0.23 on February 7. During this period, the GRT price dropped to the previous resistance zone at $0.076 during the week of September 11 to 17, forming a doji candle (green arrow). The doji candle indicated weakening selling pressure at this level.
After the initial recovery, the price retested the $0.076 zone once again last week with a bullish pin bar candle (yellow arrow), suggesting strong buying interest at a lower level.
Indeed, the price surged strongly this week and is in the process of forming a large bullish candle.
Additionally, when combining the two lows, we observe the presence of a double bottom pattern. This is a bullish pattern often seen at the end of a downtrend.
If the GRT price closes the weekly candle above the neckline of the double bottom pattern at $0.095, it would complete this pattern.
The weekly RSI has generated a bullish divergence and broken above the descending resistance line. Both are bullish signals, indicating the previous downtrend has ended.
If so, the GRT price could rise to the long-term horizontal resistance zone at $0.175. This figure corresponds to a 75% increase from the current price level.
Breaking Important Resistance
The daily chart shows even more bullish prospects. It indicates that the GRT price has broken above a significant resistance level at $0.95, formed by the long-term descending resistance line and a horizontal resistance zone.
Breakouts above such key zones often mark the beginning of a new uptrend.
The daily RSI has surged into the overbought zone and is sloping upward, indicating that the bulls have completely taken control of the market.
The nearest horizontal resistance is found at $0.14.
Conclusion
The most likely technical outlook suggests that the price of The Graph (GRT) has initiated a new uptrend. The immediate target is found at $0.14, with further potential up to $0.17.
This bullish perspective could be invalidated if the price retraces below $0.095. In that case, the GRT price might decline back to the long-term support zone at $0.076 once again.
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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