- The Graph price is consolidating in a continuation pattern known as “bullish pennant.”
- GRT could experience an 85% upswing after a successful breakout.
- A bearish scenario might develop if GRT slices through the pennant’s lower trendline at $1.85.
The Graph price shows a bullish bias as a technical indicator flashed a buy signal recently. If buyers continue to pile up, then a massive bull rally can be expected.
The Graph price begins countdown
The Graph price is traversing a continuation pattern known as “bullish pennant.” This setup includes an initial 535% run-up known as “flag pole,” followed by a consolidation in a “pennant” since February 12.
The technical formation forecasts an 85% upswing, identified by measuring the flag pole’s height and adding it to the breakout point at $2.20. This target places GRT at $4.06.
Supporting this upswing is the buy signal that was printed on March 9. Therefore, a 12-hour candlestick close above the pennant at $2.20 seals GRT’s bullish fate.
GRT/USDT 12-hour
On the other hand, investors should pay attention to IntoTheBlock’s In/Out of the Money Around Price model, which shows 2,750 addresses that purchased roughly 164 million GRT at an average price of $2.06 are “Out of the Money.” So, short-term bullish momentum could be absorbed by these investors who might want to break-even.
The Graph IOMAP chart
Therefore a sudden spike in selling pressure at $2.06 could lead to a correction towards the pennant’s lower trendline at $1.85. However, a breakdown of the consolidation will invalidate the bullish thesis and trigger a correction towards the next immediate support around the $1.58 level.
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
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
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.