Graph (GRT) has broken above two short-term resistance levels but is still trading below an important long-term resistance.
GRT has been declining since reaching an all-time high of $2.88 on February 12. While it is possible that a downward movement is developing below a descending resistance line, its slope is unclear due to the presence of several long upward wicks.
However, it is clear that GRT has declined below the $0.54 horizontal area. The area acted as support in May, but again turned resistance after falling below the GRT on January 20 (red sign). Currently, it coincides with the above descending resistance line, making it an important resistance level. Unless the GRT manages to exit, the trend cannot be considered bullish.
If GRT breaks out, the nearest resistance will lie at $1.29. This is the 0.382 Fib Retracement resistance level and a horizontal resistance area that was recently validated on November 2021 (red icon).
ongoing short-term growth
Technical indicators on the daily time frame are bullish, despite a seemingly bearish price action. This is especially evident from the bullish divergence formed in both the RSI and MACD (Green Line).
More importantly, the RSI has already moved above 50. The RSI is a momentum indicator and a reading above 50 is considered bullish. Besides, the MACD is almost positive, which is another sign of a bullish trend.
Moreover, GRT has already broken above a short term descending resistance line, which signals the start of an upward movement.
If the move continues, the nearest resistance will lie at $0.70. This is the 0.382 Fib Retracement resistance level and a horizontal resistance area.
short-lived GRT movement
cryptocurrency trader @rutradebtc Tweeted a chart of GRT, adding that it may be in the process of launching a significant reversal.
Since the tweet, GRT has split off from an increasingly parallel channel.
Although it initially diverged below it (the green circle), it has since reclaimed its resistance line.
To continue the upward movement, the GRT needs to be placed above this line.
A breakout inside the channel indicates that the upward movement is corrective and will likely not lead to new highs.
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