The Graph price drops by 12% following the announcement of a new roadmap

The Graph, an emerging name in the crypto industry, made the much-awaited announcement on Tuesday. Interestingly, the investors' reaction was far opposite to the anticipation, resulting in the price of the asset crashing.

The Graph witnesses the beginning of a “new era”

The much-awaited announcement from The Graph regarding the “new era” of the protocol was a new roadmap designed to serve the world’s data needs. In the announcement, the protocol noted that going forward, services, including new Query languages, Large Language Models (LLMs), Chain integrations, and more, would be brought to The Graph.

The wide adoption of blockchain technology and the emergence of web3 has increased the competition in the field, pushing The Graph to adapt to the change. In its announcement, The Graph stated that the roadmap is organized into five core objectives:-

1. World of Data Services: Expanding beyond subgraphs to deliver a rich market of data services on the network.
2. Developer Empowerment: Supporting developers through enhanced DevEx and tooling.
3. Protocol Evolution & Resiliency: Delivering improvements for a more resilient, flexible, and efficient protocol.
4. Optimized Indexer Performance: Boosting network performance through improved Indexer tooling and operational capabilities.
5. Interconnected Graph of Data: Creating tools for composable data and organized knowledge graph.

Commenting on the announcement of the new roadmap, The Graph stated,

“The roadmap will be used to provide users with transparency about future services, ensure continuous alignment among core contributors, and establish important milestones for the community to follow. Many milestones like migration to Arbitrum, new chains, and new query languages are already in-flight, while others shared today will be the focus over the next several months.

The event, which is largely viewed as a bullish development, was not met with the fanfare that was expected; instead, the native token GRT ended up witnessing a decline.

The Graph price corrects following the announcement

The Graph price, which in the past three weeks noted a rally that increased the value of the asset by more than 104%, witnessed a 13% crash that wiped out a chunk of gains achieved from the rally.

Falling from $0.157, The Graph price could be seen trading at $0.137 at the time of writing. At the moment, the altcoin is right above the support line of $0.135, which is a crucial level, given it has been tested multiple times as both support and resistance in the past.

If this decline continues and the support line is invalidated, GRT would be vulnerable to another possible correction, which would bring it down to $0.114. 

GRT/USD 1-day chart

However, if GRT manages to bounce back from the support line, it would have a shot at recovering going forward. If the investors halt booking profits, The Graph price could gradually make a comeback and breaching the $0.150 line would invalidate the bearish thesis, bringing the altcoin back to the rally’s top.