The Graph Price Forecast: GRT opens Pandora’s Box as technicals tease 47% downswing

  • The Graph commences potentially massive freefall after breaking under the descending triangle.
  • Immense resistance highlighted by the IOMAP reveals that significant recovery is doubtful in the short term.
  • The MVRV ratio shows that GRT has reset to the buy zone ahead of another upswing.

The Graph has been caught up in the bearish wave sweeping across the cryptocurrency market. In addition to its upside limited by a descending trendline, losses intensified as soon as the price sliced through the support at $1.7. The losses seem unstoppable, especially with GRT having lost a key technical pattern’s support.

The Graph stares into the abyss amid looming declines

The Graph is exchanging hands at $1.36 at the time of writing. The freefall from highs above $1.7 failed to hold onto the tentative support provided by the 50 Simple Moving Average (SMA) on the 4-hour chart. Continued losses saw GRT slip under a descending parallel channel.

The descending triangle is an extremely bearish pattern. Breaking below the triangle support usually culminates in massive losses, with a target equal to the distance between the pattern’s highest and lowest points. Therefore, if short-term support at $1.13 fails to hold, The Graph may plunge under $1 and test the primary support at $0.75.

GRT/USD 4-hour chart

GRT/USD 4-hour chart

The IOMAP chart by IntoTheBlock confirms that recovery will be an uphill battle. Intense resistance has been illustrated between $1.48 and $1.52. Here, 557 addresses had previously scooped up around 32.2 million GRT.

On the flip side, the absence of formidable support emphasizes the possibility of the triangle pattern’s target occurring. However, the model brings our attention to the region running from $1.2 to $1.24, where 52 addresses had previously bundled up roughly 2.2 million GRT.

The Graph IOMAP model

The Graph IOMAP model

Looking at the other side of the fence

The MVRV on-chain metric by Santiment reveals that The Graph is once again in a buy zone. This model tracks the profit or loss of GRT holders based on all the tokens moved over the last 30 days compared to the time each token moved previously.

GRT/USD 4-hour chart

The Graph MVRV model

An MVRV ratio of more than 1% shows that investors are in profit. Note that the higher the ratio, the more investors are likely to sell. However, a 1% or below ratio shows that investors are at a loss or are yet to break even.

Therefore, holding becomes a strategy as they wait for the price to rise. This greatly decreases the selling pressure and could place GRT on an upward roll to higher levels.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Cardano Price Forecast: ADA braces for a test of $2 amid a potential bull pennant

Cardano (ADA/USD) is extending its recovery this Sunday after a sharp sell-off witnessed a day before. ADA/USD charts a bull pennant on the 12H chart.  A test of the $2 mark appears inevitable if the bullish pattern is confirmed. RSI has regained upside momentum, well above 50.00.

More Cardano News

XLM Price risks further falls towards $0.53 amid double top reversal

XLM/USD is falling for the third straight day on Sunday. $0.53 support appears at risk after the double top reversal on the 1D chart. RSI points south towards the midline as the XLM price eases from record highs.

More Stellar News

Dogecoin: Defending 21-DMA is critical after Musk calls it a ‘hustle’

Elon Musk's appearance on 'SNL' throws DOGE under the bus. DOGE/USD extends sell-off into Sunday, hitting five-day lows. DOGE bulls remain hopeful as 21-DMA support holds, with RSI still bullish.

More Dogecoin News

Ethereum bulls gather strength for a sustained break above $4000

Ethereum bulls take a breather after Saturday’s $500 rally to record highs. The No. 2 coin eyes additional upside after rising wedge breakout on the 4H chart. RSI is in the overbought region, dip buying to keep the uptrend intact.

More Ethereum News


Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast