Whales dump GRT after The Graph price rallies 20% in 24 hours ahead of a “mysterious” announcement

• The Graph price added another 20% increase to its ongoing rally, bringing the total rise to nearly 100%.
• This recent rise is due to a mysterious announcement expected to take place on November 7.
• Following the rally, GRT has become highly susceptible to profit booking, instances of which can be seen in whale dumping over the past day.

The Graph price is eclipsing other cryptocurrencies that are not only its competition but also in its vicinity as the altcoin continues to post green candlesticks on the chart. While the reason behind this is unknown, quite literally, the whales do not seem to care as they are booking profits.

The Graph price dominates the chart

The Graph price, in the span of just 24 hours, has risen by nearly 20% in addition to the already active rally. The green candlesticks that have been appearing on the daily chart since October 20 indicate that GRT has risen by almost 100%, and by the looks of it, this could go on until an external factor breaks the demand.

Until then, inching closer to the $0.1533 barrier, the altcoin is close to breaching it and flipping it into support would assist the altcoin in ensuring the rally continues. This would give GRT a shot at reclaiming $0.1630, marking a six-month high.

Given the Moving Average Convergence Divergence (MACD) indicator is showing rising green bars on the histogram, the bullishness does not seem to be waning. This suggests that the potential for price increases is also rather high.

GRT/USDT 1-day chart

But if profit booking gets excessive and The Graph price fails to breach $0.1533, the cryptocurrency could be looking at correction. This would also trigger a trend reversal, sending GRT all the way to tag the support at $0.1356, losing which would invalidate the bullish thesis and leave it vulnerable to a fall to $0.1146.

What is fueling the rally, and what could end it

The Graph price is shooting up every day for one reason only, which, along with the investors, the rest of the market also does not know. The protocol is set to make an announcement on November 7 that will suggestively mark the beginning of “a new era”. Its anticipation is what is fueling this rally.

However, in a typical crypto whale pattern, the large wallet holders, unaware of what the announcement is about, are already cashing out. The addresses holding between 10 million to 100 million GRT tokens have been selling their holdings over the past couple of hours, dumping nearly 180 million GRT worth close to $27 million in just a day.

The Graph whale holdings

This cohort of investors has been very influential on the price action in the past, which makes their present move a matter of concern. If the announcement expected on November 7 turns out to be underwhelming, investors across the network will join these whales in selling their GRT for profits.

The chances of this happening are very high, which is verified by the MVRV ratio as well. The Market Value to Realized Value (MVRV) ratio is an indicator that is used to assess the average profit/loss of investors who purchase an asset. The 30-day MVRV ratio measures the average profit/loss of investors who purchased an asset in the past month. 

For GRT, the 30-day MVRV sits at 37%, which indicates that investors who purchased their tokens in the past month are sitting at 37% profit. These investors are prone to selling their holdings to book profits, which could trigger a sell-off. As seen on the chart, when MVRV reaches beyond 12%, GRT has undergone major corrections; hence, this area is termed a danger zone.

The Graph MVRV ratio

Thus, the sustainability of the rally rests on the upcoming announcement, which could break or make The Graph’s bullish sentiment.