• The Graph price crashed 35% since March 9 as it approaches the lower trendline of a horizontal parallel channel.
  • The sell-off might continue if the crucial demand zone ranging from $1.5 to $1.45 is breached.
  • Declining network activity and growth suggest a bearish outcome for GRT.

The Graph price will face a decision as it slides towards a confluence of support. Based on GRT’s reaction here, it could either surge higher or enter a corrective phase.

The Graph price at crossroads

The Graph price has suffered a bearish fate ever since it hit a new all-time high of $2.89 on February 12. Since this point, GRT has pulled back nearly 55% and is currently trading around the $1.52 level.

However, the Graph price’s clockwork-like price movement since February 23 has formed two swing highs around $2.11 and three swing lows near the $1.50 level.

A horizontal parallel channel evolves when the pivot points are connected using trend lines. This pattern does not have an inherent bias, and hence, the breakout isn’t confirmed. 

A bearish breakdown of the setup forecasts a 30% downswing to $1.05, determined by adding the channel’s height to the breakout point at $1.50.

GRT/USDT 12-hour chart

GRT/USDT 12-hour chart

Adding credence to this bearish outlook is the contrast between the overhead barriers and support levels for the Graph price portrayed by IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model.

IOMAP cohorts reveal that roughly 460 addresses purchased 18.17 million GRT at an average price of $1.47. So, a sudden spike in bearish pressure leading to a decisive close below this level could trigger a sell-off from panicking investors, further supporting the pessimistic outcome for GRT.

The Graph IOMAP

The Graph IOMAP

The daily active addresses transacting on the GRT blockchain reduced from 7,326 to 1,554, a 78% drop in the number of unique addresses. This reduction signifies investors’ disinterest or fleeing capital, which paints a bearish picture for the Graph price.

Likewise, the network growth metric, which tracks the blockchain’s user adoption, has declined 80% since February 12, adding to the already grim outlook for GRT.

The Graph Network Growth and Daily Active addresses chart

The Graph Network Growth and Daily Active addresses chart

However, considering Momentum Reversal Indicator’s (MRI) breakout line at $1.45, a bounce seems likely. Adding credence to this upside move is the presence of the 50% Fibonacci retracement level around $1.49, coinciding with the setup’s lower trend line.

Hence, this confluence of support ranges from $1.5 to $1.45, provides stable grounds for a lift-off. Therefore, a spike in buying pressure could propel the Graph price by almost 19% to the horizontal parallel channel’s middle line at $1.78.

A 22% upswing to the upper boundary at $2.11 seems likely if the bullish momentum persists.

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