Journalist
Published:
- GRT exhibits a bearish market structure on a daily basis, despite strong short-term gains.
- Moving averages signaled that the long-term downward trend was still in effect.
The Graph token (GRT) has been performing well since last Monday. Like the rest of the cryptocurrency market, the token has seen double-digit price gains. It remains to be seen whether the bulls can defend these recent gains.
While the short-term bias has been bullish, the long-term trend has been bearish. Performance since June has favored sellers, and bulls may not yet have the strength to force a significant rally.
Chart is about to surpass August highs
Source: GRT/USDT on TradingView
The Graph token performed well over the past week and headed towards the local resistance level at $0.18. The RSI was at 65 and has been rising since the second week of September.
This shows that the bullish momentum has strengthened. The CMF also recovered from -0.05 to reach +0.31, a value that the indicator had not seen since February.
This indicates a strong flow of capital into the GRT market, which could strengthen bullish efforts to break the $0.18 resistance.
Simple moving averages captured the essence of the downtrend. The faster 50-day moving average was still below the 100-day moving average, meaning the recent upward move needs to be sustained for a longer period of time to break the downtrend.
The lack of sales during the slight price decline was encouraging
Source: Coinalyze
Over the past week, both the price and open interest have increased, indicating bullish sentiment. Speculators are eager to invest long-term on GRT. This is a market-wide phenomenon that has occurred following the resurgence of Bitcoin.
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Other assets saw their spot CVD remain in a sideways trend, meaning the rally was not supported by spot demand.
The Graph token has seen strong demand in recent days and low selling pressure. The funding rate was also positive.
Disclaimer: The information presented does not constitute financial, investment, trading or other types of advice and represents the opinion of the author only.
