The Graph (GRT) recovered from a near reversal yesterday, attracting the attention of more investors along its recovery. According to CoinGecko, is up nearly 20% since last week, confirming a possible long-term continuation of its bullish trend. If this continues, GRT’s long-term prospects will be exceptionally bullish.
However, the past price movement of the token might be indicative of a short-term timeframe with bearish undertones. If this is the case, GRT’s gains within the last few weeks might be in danger of a reversal.
The Graph Volatility: Obstacle For This Week’s Movement?
CoinCodex notes that the token has experienced significantly high volatility as a result of the token’s previous bullish price movements in the last couple of days. Volatility, in every sense of the word, is a double-edged sword for investors as it introduces a lot of uncertainties for the asset.
In this case, the sharp decline and the token’s subsequent jump have led to the bulls losing momentum to sustain a long-term trajectory. It has also narrowed the target of the bulls in the short term from $0.2890 to $0.2016.
Although the sharp decline might be beneficial as it reintroduced competition within the past bullish days, it has hurt the progress of GRT momentum-wise, possibly lengthening the timeline for long-term holders to experience some gains.
Breakthrough On $0.224 Should Open The Floodgates Medium Term
With the present market environment heavily favoring the bulls in the long term, $0.2242 presents itself as a crucial medium-term target as a breakthrough on this resistance level will open the door toward $0.2890. However, this can only occur if Bitcoin also continues to push through its crucial resistances which may or may not happen.
However, with improving macroeconomic circumstances, riskier assets like cryptocurrencies might experience capital inflow if fear of an economic downturn continues to weaken in the coming weeks. As the US economy continues to perform in the long term, major cryptocurrencies like Bitcoin and Ethereum will experience jumps in their price, further strengthening the bullish thesis.
But the market is not entirely on board the bullish hype train the macroeconomic side is pushing. With volatility also trending upward in the traditional finance space, fears of a possible crash might leak to the crypto market, hurting GRT’s long-term prospects.
In the meantime, investors and traders should exercise caution as the token is entering a high volatility zone which may hurt future gains in the long term. As of writing, however, the bulls are still in control of the market, ensuring a short term breakthrough possible.
Featured image from Medium, chart from TradingView