• The Graph price is consolidating in a continuation pattern known as “bullish pennant.”
  • GRT could experience an 85% upswing after a successful breakout.
  • A bearish scenario might develop if GRT slices through the pennant’s lower trendline at $1.85.

The Graph price shows a bullish bias as a technical indicator flashed a buy signal recently. If buyers continue to pile up, then a massive bull rally can be expected.

The Graph price begins countdown

The Graph price is traversing a continuation pattern known as “bullish pennant.” This setup includes an initial 535% run-up known as “flag pole,” followed by a consolidation in a “pennant”  since February 12.

The technical formation forecasts an 85% upswing, identified by measuring the flag pole’s height and adding it to the breakout point at $2.20. This target places GRT at $4.06.

Supporting this upswing is the buy signal that was printed on March 9. Therefore, a 12-hour candlestick close above the pennant at $2.20 seals GRT’s bullish fate.

GRT/USDT 12-hour chart

GRT/USDT 12-hour 

On the other hand, investors should pay attention to IntoTheBlock’s In/Out of the Money Around Price model, which shows 2,750 addresses that purchased roughly 164 million GRT at an average price of $2.06 are “Out of the Money.” So, short-term bullish momentum could be absorbed by these investors who might want to break-even.

The Graph IOMAP chart

The Graph IOMAP chart

Therefore a sudden spike in selling pressure at $2.06 could lead to a correction towards the pennant’s lower trendline at $1.85. However, a breakdown of the consolidation will invalidate the bullish thesis and trigger a correction towards the next immediate support around the $1.58 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.

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