Insights Analysis GRT Is for the Crypto Bulls

GRT Is for the Crypto Bulls

May 31, 2024 Analysis
BITmarkets | GRT Is for the Crypto Bulls

Seasoned cryptocurrency The Graph (GRT) has exhibited bullish behavior in 2024. Following a month-long price correction, GRT re-captured an impressive 27% during May, and the crypto bulls may want to keep GRT in their portfolio as the cryptocurrency may be set for greater gains in the near future.

Daily time frame analysis

GRT1D

GRTUSDT - 1 Day Time Frame

GRT is currently testing what may be a potential support level with a second touch. Historically, GRT often forms a double bottom pattern before initiating a breakout. Typically, the price will peak before descending to test the lows again, thus forming a double bottom.

Recently, GRT was slightly overextended and established an interim low, which might now act as support. Despite this, GRT is likely to either range sideways or revisit previous highs before solidifying a double bottom pattern.

The current market conditions, however, complicate breakout potentials, contributing to market volatility. If strong demand is evident at this level, there could be an excellent entry opportunity, targeting resistance around $0.42, followed by the psychological threshold of $0.5.

Should this potential support fail, the blue line—indicating the Fixed Range Volume Profile and serving as a baseline for a double bottom pattern—is expected to hold.

1-hour time frame insights

GRT1H

GRTUSDT - 1 Hour Time Frame

On the lower timeframes, GRT has formed a triple bottom pattern. Nonetheless, while lower timeframes provide useful insights, the daily timeframe remains crucial.

If GRT loses volatility and trades below a previously established liquidity level (marked black line) that failed to hold, it could sweep the green support area similar to its interaction with the black line.

An ideal entry would occur if GRT holds above this black line, potentially visiting the blue line—which represents the Fixed Range Volume Profile—and possibly rallying to previous highs. This blue line may also serve as resistance on lower timeframes.

Key strategy: continuous retesting

It is crucial to remember the importance of retesting in trading. There is almost always a retest in market movements. For instance, if GRT were to break through the blue line with increased volume, traders might rush in.

However, upon realizing that this level is a resistance, they might sell off or face liquidation if they don't act swiftly enough, leading to a retest of the support. The fact that GRT did not quickly retest the support after its initial test is positive, indicating strong demand and lower

selling pressure.

The Graph’s potential

As the 'Google of blockchains,' The Graph has significant potential to become one of the top AI coins.

With the ongoing growth of decentralized applications, well-organized data becomes increasingly crucial, positioning The Graph to excel in the evolving landscape of decentralized finance.

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