GRT Technical Analysis: Falling Wedge Brings a Possible Reversal Spot
GRT is the first-ever provider of instant cryptocurrency-backed loans, and it intends to solve inefficiencies in the lending market. The automated lending process makes use of intelligent contracts as well as an Oracle that runs on the Ethereum blockchain to manage loans.
When a customer transfers money to a GRT-controlled account, an oracle is able to establish the loan, and the borrower receives the funds immediately. If the user makes a payment to pay back this loan system returns the cryptocurrency and registers each transaction in the blockchain.
Let us move ahead to read about The Graph technical analysis.
Past Performance of GRT
GRT coin price shows a downfall of more than 10% in the last week resulting in the reversal from $0.60 to $0.50. The mid-term price action shows a falling wedge pattern in the daily chart, with the price resting close to the support trendline. Moreover, the morning star pattern forming near the support trendline indicates the start of a bullish reversal.
GRT Technical Analysis
The GRT coin price attempts to make a bullish candle to complete the morning star pattern in the daily chart. Moreover, the constant lower price rejection evident by the long wicks forming near the support trendline reflects underlying bullish attempts.
The Graph coin prices trend lower within the bearish influence of VWMA in the daily chart. As the price fails to sustain above the VWMA slope and falls significantly lower, it indicates a solid bearish power.
The Momentum indicator at -0.008 indicates a bullish rise in the past few days, evident by the spike in slope. Moreover, the slope showcases a bullish divergence as the price falls but the slope increases in the daily chart.
The Commodity Channel indicator at -103 shows the current price is lower than the 20-day historic average price. However, the slope shows an uptrend as it makes a higher low formation.
Cumulating the technical indicators, the GRT coin price may shortly give a bullish reversal within the falling wedge pattern. However, the bullish breakout remains questionable.
Upcoming Trend
The GRT coin price rests at the support trendline of the falling wedge pattern, making it a great entry spot. Entry at current prices brings the opportunity to ride the extra trend before the bullish breakout.
However, the breakout is not imminent and traders might find a reversal in the future from the resistance trendline. Therefore, traders need to mitigate their risk at the resistance trendline.
The GRT coin price chart suggests the next resistance levels at $0.60 and $0.75 above the falling wedge pattern. And, the support levels are at $0.48 and $0.36.
At press time, TradingView Sentiment Chart gives a "SELL" signal for the GRT coin.
