- 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
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.
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