The Graph (GRT) continues to show signs of weakness and may decrease to the support level of $1 in the near future.
Strong Resistance Level
After reaching its lowest point at $0.52 in November 2022, the price of The Graph (GRT) began a strong recovery. This move helped the price break above the resistance level of $0.1 and approach the strong resistance level at $0.17. Although the price initially broke above the $0.17 level, it turned out to be a false breakout. The GRT price was rejected from this level and created a long wick above it, a sign of selling pressure.
Since then, the bulls has attempted to break above the $0.17 level multiple times but has failed and created a bearish engulfing pattern in the week of April 16 to 23. This is a bearish pattern that signals that the bears has control of the market.
In addition, the rejection is combined with a bearish divergence in the weekly RSI indicator, further reinforcing its significance.
If so, the GRT price may retest the $0.1 support level once again, marking a more than 20% drop from the current price level.
Trading Range
The GRT price has been trading within the range of $0.13 to $0.175 since March 15. The price has tested both the resistance and support lines of the range several times.
Although it has held above the range support level for over a week, it has not achieved any significant recovery. This shows a lack of buying power at higher levels.
The RSI indicator is maintaining below 50 and trending downwards, supporting the possibility of a price breakdown below the range.
If so, the price may drop to the long-term support level at $0.1, as mentioned above.
Conclusion
The potential outcome suggests that the GRT price will break the $0.13 support level and drop to the $0.1 level.
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.
Read more:
- Curve DAO (CRV) Price May Increase Strongly Thanks To Launch Of Stablecoin CRVUSD
- Shiba Inu Reigns Supreme As Most Popular Meme Coin In The US And India