- The Graph price has sliced through the descending parallel channel’s lower trendline, hinting at a 25% sell-off.
- Transactional data adds credence to the bearish outlook due to the lack of demand barriers.
- A bullish scenario will come into play if buyers clear significant resistance levels up to $1.93.
The Graph price has breached through a descending parallel channel triggering a downtrend.
The Graph price poised for a steep correction
The Graph price has been formed two distinctive higher highs and three lower lows between February 28 and March 15. By connecting the swing points using trendlines, a descending parallel channel seems to form.
However, the bearish momentum seen after March 15 has resulted in a breakdown of the technical formation. Now, a 25% downswing to $1.28 awaits GRT. This target is determined by adding the channel’s height to the breakout point at $1.73.
GRT/USDT 4-hour chart
Adding credence to this bearish outlook is the lack of support levels up presented by IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model, suggesting a swift 11% correction up to $1.47 on the horizon. Here nearly 500 addresses hold roughly 46.62 million GRT.
Breaching this level could spell disaster for The Graph price as it could result in another sell-off to $1.22.
The Graph IOMAP chart
Regardless of the bearish outlook, investors need to note that a sudden spike in bullish pressure leading to a decisive close above $1.93 will invalidate the pessimistic outcome for the Graph price.
In such a case, an 8% upswing to $2.11 seems likely. If the bullish momentum persists, market participants can anticipate a 15% climb to $2.4.
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.