- The Graph price is locked in a rising wedge formation.
- A failure to hold key support level projects a decline to $1.70.
- GRT rebound from February 23 low is corrective.
The Graph price gained over 1,100% between January and February, closing positive for seven straight weeks. Although a sharp 55% decline followed the tremendous bull rally, a continuation of the uptrend does not seem likely.
The Graph price risks outweigh the rewards
Since February 23, The Graph price has shaped a rising wedge pattern on the 4-hour chart. This technical formation is considered a reversal pattern even though it may not occur at the actual climax peak high.
On March 10, The Graph Price began attempting to break out around the $2.12 – $2.13 price range but has been met with selling pressure on seven of the last nine 4-hour candlesticks. To build on the negativity has been the lack of substantial volume supporting the breakout attempts which is consistent wedge formations.
The recent breakout attempt’s throwback is a classic tell that the GRT is not ready to resume the uptrend. It also raises the odds that this cryptocurrency is heading lower in the coming days and maybe weeks.
The only line keeping the token from falling to the lower trendline at at $1.70 is the 23 four-hour simple moving average.
GRT/USD 4-hour chart
Even if GRT does generate a rally, it will face stiff resistance at the .618 Fibonacci retracement level of the February decline at $2.33. The Graph price will need to close above this hurdle on a 4-hour candlestick to negate the short-term negative outlook.
For now, the risks outweigh the rewards.