- The Graph commences potentially massive freefall after breaking under the descending triangle.
- Immense resistance highlighted by the IOMAP reveals that significant recovery is doubtful in the short term.
- The MVRV ratio shows that GRT has reset to the buy zone ahead of another upswing.
The Graph has been caught up in the bearish wave sweeping across the cryptocurrency market. In addition to its upside limited by a descending trendline, losses intensified as soon as the price sliced through the support at $1.7. The losses seem unstoppable, especially with GRT having lost a key technical pattern’s support.
The Graph stares into the abyss amid looming declines
The Graph is exchanging hands at $1.36 at the time of writing. The freefall from highs above $1.7 failed to hold onto the tentative support provided by the 50 Simple Moving Average (SMA) on the 4-hour chart. Continued losses saw GRT slip under a descending parallel channel.
The descending triangle is an extremely bearish pattern. Breaking below the triangle support usually culminates in massive losses, with a target equal to the distance between the pattern’s highest and lowest points. Therefore, if short-term support at $1.13 fails to hold, The Graph may plunge under $1 and test the primary support at $0.75.
GRT/USD 4-hour chart
The IOMAP chart by IntoTheBlock confirms that recovery will be an uphill battle. Intense resistance has been illustrated between $1.48 and $1.52. Here, 557 addresses had previously scooped up around 32.2 million GRT.
On the flip side, the absence of formidable support emphasizes the possibility of the triangle pattern’s target occurring. However, the model brings our attention to the region running from $1.2 to $1.24, where 52 addresses had previously bundled up roughly 2.2 million GRT.
The Graph IOMAP model
Looking at the other side of the fence
The MVRV on-chain metric by Santiment reveals that The Graph is once again in a buy zone. This model tracks the profit or loss of GRT holders based on all the tokens moved over the last 30 days compared to the time each token moved previously.
The Graph MVRV model
An MVRV ratio of more than 1% shows that investors are in profit. Note that the higher the ratio, the more investors are likely to sell. However, a 1% or below ratio shows that investors are at a loss or are yet to break even.
Therefore, holding becomes a strategy as they wait for the price to rise. This greatly decreases the selling pressure and could place GRT on an upward roll to higher levels.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Three Arrows Capital demands $1.5B increase in the FTX lawsuit
Liquidators managing Three Arrows Capital's (3AC) bankruptcy have filed a motion to raise their claim against FTX from $120 million to $1.53 billion. Bloomberg reports that FTX allegedly liquidated and seized around $1.33 billion in assets from the hedge fund to settle debts just two weeks before 3AC’s collapse.
Missing crypto influencer Kevin Mirshahi found dead in Montreal Park
Authorities report that the remains of Kevin Mirshahi, a prominent crypto influencer who was abducted in June, have been found in a Montreal park. Local police informed “The Gazette” that a passerby found the grim discovery on October 30 in Île-de-la-Visitation Park.
XRP struggles near $0.7440, could still sustain rally after Robinhood listing
Ripple's XRP open interest has declined by over 10% in the past 24 hours. Robinhood's listing of XRP could serve as a catalyst for renewed demand. XRP continues to struggle near historically strong resistance after sustaining another rejection at $0.7440.
Dogecoin price forecast: Miners offload $240M as DOGE approaches risk zone
After reaching a three-year peak of $0.43 on November 12, Dogecoin price wobbled 13% to find support at the $0.38 level on Wednesday. Miners capitalized on Trump’s recent D.O.G.E confirmation statement to offload 620 million DOGE in the last three days.
Bitcoin: Further upside likely after hitting new all-time high
Bitcoin hit a fresh high of $76,849 on Thursday as crypto-friendly candidate Donald Trump won the US presidential election. Institutional demand returned with the highest single-day inflow on Thursday since the ETFs’ launch in January.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.