Grass [GRASS] token has hit an all-time high and continues its exploration of new price territories. The daily trading volume has surged by 21.6% in the last 24 hours, reaching an impressive total of $601 million.
Technical analysis suggests that there might be a possible retracement leading to a drop below the $3 threshold. Such a downturn could present a buying opportunity as the market sentiment is currently bearish. A dip below $2.5 could indicate the beginning of a more significant correction.
Signs of Potential Overextension in the Market
Starting from the 5th of November, the trading volume has been steadily increasing. The On-Balance Volume (OBV) has also been on an upward trend, indicating strong buying pressure responsible for driving up the value of GRASS.
Over the past three days, the Relative Strength Index (RSI) on the 4-hour chart has remained above the neutral 50 level, reflecting a highly bullish momentum. However, a bearish divergence has appeared in the last couple of days.
This divergence is visible as the RSI has been forming lower highs while the token’s price has been forming higher highs. Although this divergence does not definitively signal a trend reversal, it does indicate a potential minor pullback in the market.
If a pullback occurs, the previous resistance range of $2.7-$2.85 is anticipated to act as a crucial support level in the upcoming days.
Forecasting a 14% Retracement for Grass Token
Additional confirmation of the $2.7 area being a significant demand zone was indicated by the short-term liquidation heatmap. Notably, a considerable amount of liquidity gathered just above the previous high of $3.03 in the last 24 hours.
Consequently, the GRASS token gravitated towards this level and successfully breached it. There is potential for further price appreciation in the future.
However, considering the observed momentum divergence on the 4-hour chart, a possible pullback to the nearest liquidity pool around $2.7 cannot be ruled out.
Disclaimer: The information provided is not intended as financial, investment, trading, or any other form of advice and represents solely the author’s personal viewpoint.