- 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.
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