- The Graph price shows the formation of a bull flag pattern on the 4-hour chart.
- A decisive close above bull flag’s upper trendline projects GRT 65%-to-185% price surge in the mid-to-long term.
- The bullish thesis could be invalidated if GRT price slices through the flag’s lower trendline around the $1.72 level.
The Graph price has seen a massive 190% rally since February 10. However, due to the slowdown of the cryptocurrency market, GRT has consolidated into a bull flag formation awaiting a clear breakout.
The Graph price primed for a massive rally
The Graph price has dipped into a consolidation pattern since February 12 after a brief but explosive rally, forming a bull flag.
A bull flag is a momentum-based pattern, where the price first explodes with high volume forming a “flag pole”. This rally then is followed by a consolidation, creating the “flag”.
The breakout from the flag continues in the direction of the previous price trend. Therefore, these patterns are called continuation patterns. The target for such a technical setup is the distance between the pattern's high and the flagpole's base measured from the breakout point.
In GRT's case, the first target is a 65% surge measured from the top of the pole to the bottom which coincides with the 127.2% Fibonacci retracement level. The second is a 180% surge measured in the opposite direction or the 261.8% Fibonacci level.
These targets are $3.35 and $5.90, respectively.
GRT/USDT 4-hour chart
It is worth mentioning that a failure to close above the flag’s upper trendline could send the token towards the support barrier at $1.65. Moreover, a breakdown of the flag invalidate GRT’s bullish thesis and trigger a sell-off towards the $1.1 level.
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.