The price of The Graph (GRT) has bounced back from a significant support level and formed a bullish pattern. It may have completed its correction phase.
Double bottom pattern
After being rejected by the $0.175 resistance level and forming a bearish engulfing candlestick pattern during the week of April 16th to April 23rd, the GRT price retested the important support level at $0.105 last week.
Combining this level with the low reached by GRT during the week of March 6th to March 13th, we can observe the presence of a double bottom pattern (blue arrows). This is a bullish pattern, which usually leads to a trend reversal to the upside.
Furthermore, it is accompanied by bullish divergence in the RSI indicator, further enhancing its significance.
Therefore, there is a possibility that the GRT price is currently confined within the range of $0.105 to $0.175.
If so, the GRT price may retest the resistance level of the range at $0.175 in the near future.
Short-term outlook
The 4-hour chart supports a bullish outlook from the weekly timeframe, as the GRT price has broken above the confluence of resistance levels at $0.12, formed by horizontal resistance and a short-term downtrend line.
The price is currently in the process of flipping it into support. If successful, it will also reinforce the idea that the correction phase has been completed. Afterward, the GRT price may break above the minor resistance level at $0.131 and advance towards the next resistance level at $0.148.
The RSI is above 50 and rising, favoring a bounce from this level.
Conclusion
The price of The Graph (GRT) may have completed its correction phase. The nearest targets are found at $0.148 and above it to $0.175.
This bullish view would be invalidated if the price breaks below the important support level at $0.105.
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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