/AI Token The Graph (GRT) Sees Correction, But How High Can The Price Go?

AI Token The Graph (GRT) Sees Correction, But How High Can The Price Go?

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.

The Graph
The Graph transactions | Source: Twitter @lookonchain

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.

The Graph GRT price
GRT price, 1-day chart | Source: GRTUSD on TradingView.com

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

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