The Graph (GRT) has bounced considerably since its Jan. 24 lows, but has yet to reclaim a crucial horizontal resistance level. It has to do so in order for the trend to be considered bullish.
GRT has been falling since reaching an all-time high price of $2.88 on Feb. 12. Initially, it bounced at the $0.55 horizontal support area (green icon), and consolidated above it for 242 days.
However, the price broke down on Jan. 17, and proceeded to reach a low of $0.34 on Jan. 24. Measuring from the aforementioned all-time high price, this amounted to a decrease of 87.69%.
While GRT has bounced since, it is still trading below the $0.55 horizontal area, which is now expected to act as resistance. Furthermore, the area coincides with a long-term descending resistance line that has been in place for 363 days.
Short-term GRT movement
The six-hour chart shows that GRT has been trading inside an ascending parallel channel since Jan. 24. Such channels usually contain corrective movements, meaning that a breakdown would be the most likely scenario.
Most recently, the price was rejected by the resistance line on Feb. 7. This caused a downward movement that took GRT in the lower portion of this channel.
Wave count analysis
Cryptocurrency trader @Ewfib tweeted a chart of GRT, stating that the price is not yet done correcting.
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