In the past week, The Graph [GRT] token has shown a strong performance, reflecting the broader trend in the cryptocurrency market with substantial price increases. The sustainability of these recent gains remains uncertain.
Although there has been a positive short-term outlook, the long-term trajectory has leaned towards bearish sentiment. Seller dominance has been prevalent since June, raising doubts about the ability of the bulls to initiate a significant recovery.
The Graph Nears Breaking Previous August Peaks
During the previous week, The Graph token exhibited notable progress, approaching the local resistance threshold at $0.18. The Relative Strength Index (RSI) stood at 65, steadily climbing since mid-September, indicating a gathering bullish momentum. Additionally, the Chaikin Money Flow (CMF) rebounded from -0.05 to +0.31, a level not observed on the indicator since February.
This upsurge suggested a substantial influx of capital into the GRT market, potentially strengthening the bullish endeavors to breach the $0.18 resistance level.
Analysis of the simple moving averages underscored the persistent downtrend. The faster 50-day moving average (DMA) remained below the 100 DMA, emphasizing the necessity for a sustained upward movement over an extended period to break the prevailing bearish trend.
Positive Signals from Minimal Selling during a Minor Price Dip
Recent observations indicate a surge in price and Open Interest over the past week, indicative of prevailing bullish sentiment. Speculators are keen to take long positions on GRT, echoing a broader market sentiment following Bitcoin’s resurgence.
While several assets have witnessed a stagnation in their spot Composite Volume Delta (CVD), signifying a lack of spot demand support for the rally, The Graph token has experienced substantial demand in recent days coupled with minimal selling pressure. Furthermore, the funding rate has displayed a positive trend.
Disclaimer: The views presented are not intended as financial advice and solely represent the author’s personal opinion.