Preview of the Week Ahead
During the week of May 8th to 15th, The Graph (GRT) revisited a crucial support level at $0.105 before embarking on a sharp ascent, marked by a morning star pattern (green arrow). This pattern is typically seen as a bullish indication of a possible trend reversal.
Moreover, if we consider the previous low of GRT price in the week of March 6th to 13th, we can discern a double bottom pattern that reinforces the bullish outlook. Additionally, the RSI indicator (blue line) shows a bullish divergence, adding to the positive sentiment.
As a result, GRT price could potentially attempt to break through the long-term resistance level at $0.175 in the near future.
Opportunity for a Breakthrough
The daily chart reinforces the optimistic outlook derived from the weekly analysis, as it reveals that GRT price is currently trading within an ascending triangle pattern. This pattern typically precedes a breakout in the majority of cases.
Furthermore, the RSI indicator has surpassed the horizontal resistance level and is currently above 50. Such breakouts in the RSI indicator are often followed by similar breakouts in price action.
Therefore, it is possible that GRT price could surpass the resistance level of the triangle at $0.13 in the near term. If a breakout does occur, the price could potentially reach a target of $0.15, which is equal to the height of the pattern after the breakout.
Conclusion
Based on technical indicators, it appears that GRT price is poised to surpass the nearest resistance level and continue to climb in the upcoming days. The target price is set at $0.15, with the possibility of reaching higher levels at $0.175.
However, this bullish outlook would be nullified if the price falls below the long-term support level of $0.105.
Disclaimer: This article is intended for informational purposes only and should not be considered as investment advice. As an investor, it is crucial to conduct your own research before making any investment decisions. We cannot be held responsible for any investment decisions made based on this information. This is not financial advice.