The price of The Graph’s native token, GRT, has gained a whopping 114% in the last seven days. However, within the last few hours, the price has experienced a major correction of about 23%. After trading for $0.2322 at one point, GRT is trading at $0.1871 as of press time.
While the hype around AI tokens continues to dominate the cryptocurrency market, the correction could be due to a token unlock from The Graph. According to on-chain analytics service Lookonchain, The Graph Governor unlocked 36.8 million GRT and sent 18 million of them to Coinbase.
As the graph below shows, almost every time GRT reached a local top since mid-December, a transaction was sent to Coinbase. The analyst writes:
The Graph unlocked 36.8M $GRT($7.35M) and sent 18M $GRT($3.6M) to #Coinbase 7 hrs ago! And graph.eth has been transferring $GRT to #Coinbase at price highs almost every time since Dec 15, 2022. The price of $GRT increases by ~60% today.
How High Can The Price Of The Graph (GRT) Rise?
Since the beginning of the year, GRT has skyrocketed a whopping 240%. However, like most altcoins, GRT is still 93.4% away from its February 2021 all-time high of $2.84 – which leaves a lot of potential upside.
For the moment, however, a short break from the fabulous rally seems appropriate on the occasion of the token unlock. With an RSI of 77, the price is still in the overbought zone on a daily basis despite the drawdown.
But since Google has also announced in an official blog post that it intends to present its in-house chat AI “Bard” as soon as possible, an end to investors’ interest in AI projects is not to be expected in the near future.
And also from a chart perspective, the GRT price still offers room for a trend continuation towards the level between $0.30 and $0.35.
To confirm its uptrend, the GRT price should first stabilize above the 23.6% Fibonacci, which is also matched by a strong support zone at $0.1691. A retest of this level seems likely before The Graph can resume its rally.
Then, the 38% Fibonacci retracement at $0.24 comes into focus. If the bulls continue to hold the trigger, the upward movement could extend to the area around $0.30. This is a crucial resistance level from May 2022, when the price fell sharply due to the Terra Luna collapse.
If the bulls continue to have the upper hand, the 61% Fibonacci level at $0.36 would be of great importance. At the current price, this would already mean a renewed doubling of the price. The long-term target is likely to be the $0.55 level from early April 2022.
In a bearish scenario, the GRT price breaks through the important support at $0.1691. In this case, the bears could push the price down to the breakout level at $0.13. This would then be a key trend decision for the price of The Graph.
Featured image from The Graph, Chart from TradingView.com