Graph (GRT) analysis – Hype about AI tokens fuel the crypto course4 min read
In the course of the current AI hype, the vast majority of crypto projects from this sector can also increase in value significantly. The largest AI project by market cap, The Graph (GRT), is also benefiting from this move, climbing 31 percent north in the last 24 hours of trading. Since the beginning of the year, the decentralized open source indexing protocol has even seen a price increase of 230 percentage points. Despite the recent price jump, the GRT price is currently trading at USD 0.18, 93 percentage points below its all-time high from February 2021. Google is also in one official blog entry has announced that it intends to present its in-house chat AI “Bard” soon, investors’ interest in AI projects is not expected to end any time soon. From a technical point of view, the GRT price still offers room for a trend continuation in the direction of the tear-off edge between USD 0.30 and USD 0.35. Investors should still anticipate short-term setbacks as The Graph looks slightly overbought in the near-term.
Bullish price targets: $0.20/0.22, $0.24, $0.30, $0.34, $0.39/0.41, $0.50/0.54, $0.62, 0.73 /$0.78, $1.10/$1.21
Graph (GRT): The bullish price targets
To confirm its uptrend, GRT price must first stabilize above the orange zone. Also to generate further price potential in the direction of the blue resist zone between the 138 and 161 Fibonacci extension of the current price movement. If The Graph skips these chart levels, the 38 Fibonacci retracement at $0.24 comes into focus. If the bulls stay on the trigger and the GRT rate does not slip below the $0.16 mark despite interim consolidation, the upward movement will extend to the purple area around $0.30. The first relevant target can be found here with the tear-off edge from May 2022. Profit-taking by the buyer side must be planned for here. Only when this resistance zone is dynamically recaptured will the strong cross-resistance at USD 0.34 come into the eyes of investors. Here is the overall downtrend line from the all-time high. At the first attempt, the GRT course is likely to fail here.
Investors are focusing on new targets
If the price gets stuck here and the bulls then break through this price level as well, a subsequent rise into the green resist zone between US$ 0.39 and US$ 0.41 is likely. Another interesting resistance can be found at this price level with the higher-level 50 Fiboancci retracement. If The Graph can then stabilize above the red downtrend line, the price should target the mid-term price target between $0.50 and $0.54. The GRT course last failed here in April of the previous year. If the crypto market also continues to be bullish and the GRT course can also recapture the turquoise area. Is the golden pocket at $0.62 coming into focus for investors. Investors are likely to realize more profits here again. If the hype about AI applications persists this year, a march into the pink resistance zone between US$0.73 and US$0.78 is also conceivable. Only if The Graph can sustainably overcome this area as well, a subsequent increase up to the area around the 78 Fibonacci retracement of the overriding price movement should be kept in mind. For now, the zone between $1.10 and $1.21 is acting as the maximum bullish price target for the coming trading months.
Bearish price targets: $0.16, $0.13, $0.12/0.11, $0.10, $0.08, $0.07, $0.06/0.05
GRT: Bearish price targets for the coming months
The bears are clearly at a disadvantage at the moment. From their point of view, you must prevent the GRT course from breaking out of the blue resistance zone and starting to the downtrend line in the short term. At this point at the latest, it is important to initiate a reversal movement. However, only when The Graph gives way below the orange zone and subsequently breaks through the breakout level at 0.13 US dollars will an important directional decision be made. The make-or-break area awaits in the red zone between $0.12 and $0.11 with the EMA200 moving average line (blue). The bulls are likely to initiate another upside attempt here.
Directional decision to be expected
If, contrary to expectations, the GRT price slips below this area, this would be an important partial success for the seller. Then a retracement to the breakout level from the beginning of the month at $0.10 is likely. The super trend in the daily chart can also be found in this chart area. If the bulls give up this support level, the yellow support zone comes into focus as a target area. The EMA50 (orange) is currently also running here. If the bears succeed in selling GRT below this in the medium term, the correction will extend to at least $0.07. That would put GRT back in the zone around the 52-week low of $0.06-$0.05. This area represents the maximum bearish target. From a technical point of view, however, it is very unlikely that The Graph will lose as much again.
From an indicator point of view, the RSI in the daily chart shows an overbought status, but the past shows that bullish price rallies in the crypto market tend to ignore this signal. Since the MACD indicator still has a lot of room to go up, procyclical entries are preferable in the event of short-term setbacks to significant support levels. In addition, both indicators have also activated a buy signal on a weekly basis and there is still room for improvement.