• GRT price is in a tight consolidation above the 50-day simple moving average (SMA)
  • There is a high potential for one of the highest ROIs in the short term.
  • However, The Graph is vulnerable to massive one-day swings.

GRT price for the last six days has contracted into a very tight range on light volume, showing a stand-off between bulls and bears. For traders, it is a timely trading opportunity with explosive upside potential.

GRT price has narrowed into an isosceles triangle

Like other standard triangles, prices in a symmetrica or isoscelesl triangles must touch each trend line at least twice and cover the area in-between. In general, volume declines during the pattern formation, with a 75% probability of an upside breakout. 

The Graph price has shown declining volume through the triangle's development and has discovered support at the 50-day SM, just below the middle of the Bollinger Band. To confirm the breakout, GRT must close above the upper trendline on a daily basis and ideally near the high of the daily candle. The immediate price target is the upper Bollinger Band at $2.07.

The rally’s durability will be tested between the .618 and .786 Fibonacci retracement levels at $2.30 and $2.56. To add to the challenge, there is an area of price congestion on the left side of the triangle that converges with the retracement levels.

A successful push through the congestion will let GRT price test the all-time highs at $2.90 in short order and potentially the measured move target of $3, representing a 60% gain from the declining trendline.

GRT/USD daily chart

GRT/USD daily chart

There is no doubt there is a substantial area of support for The Graph price as the ascending trendline intersects with the 50-day SMA and the lower Bollinger Band. A daily close below $1.57 would put the bullish narrative in doubt and leave the cryptocurrency exposed to a quick drop to the February low at $1.33.

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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