The Graph Price Prediction: GRT must move out of the no-trade zone to witness a 40% rally
- The Graph price shows a reduced volatility phase as it gets squeezed between the Bollinger Bands.
- A decisive close above the upper range of the no-trade zone projects a 40% rally to $3.37.
- However, a 13% correction is possible if GRT slices through the $1.96 support level.
The Graph price has taken a hiatus after skyrocketing by 190 within 48 hours to hit a new all-time high of $2.86. Such tremendous growth could now be followed by a burst of volatility that could propel GRT by another 40%.
The Graph price gets squeezed in the no-trade zone
The Graph price has seen a considerable dry-up of its volatility since February 15 as the Bollinger Bands converge. While this indicator measures an asset's volatility, it fails to determine the direction of its trend. Therefore, a breakout from the bands will result in a highly volatile move that could head either way.
As long as The Graph price continues to trade between the Bollinger bands, it will not establish a clear trend. Hence, GRT must move out of the no-trade zone that extends from $2.36 to $1.96.
A 4-hour candlestick close above the no-trade zone indicates the potential start of a new uptrend. In this case, a build-up of bullish momentum could see GRT rally 40% to a new all-time high of $3.30. This target coincides with the 127.2% Fibonacci retracement level.
GRT/USDT 4-hour chart
Investors should be careful of a 4-hour candlestick close below the $1.96 support level, as this would signal bears' presence. If this were to happen, The Graph price could pull back by 12% to the 38.2% Fibonacci retracement level at $1.70.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
