The price of Graph (GRT) is outperforming other cryptocurrencies as the altcoin continues to print green candles on the chart. Although the reason behind the move is unclear, whales don’t seem to care as they are taking profits.
In just 24 hours, GRT prices increased by nearly 20%, adding to an already positive price increase. The green candle that has appeared on the daily chart since October 20 shows that GRT has increased by almost 100%, and this is likely to continue until external factors disrupt demand.
The altcoin is about to break above the $0.153 mark and turn towards support, which will help it sustain its gains. This would give GRT a chance to reclaim $0.163, a 6-month high.
The bullish trend does not appear to be weakening at all as the Moving Average Convergence Divergence (MACD) indicator is showing bullish green bars on the chart. It can be seen that the potential for price increases is also considerable.
1 day GRT chart. Source: TradingView
But if profit-taking becomes excessive and GRT price fails to break above $0.153, the cryptocurrency may consider a pullback. This would also lead to a trend reversal, with GRT targeting support at $0.135, while losing this level would invalidate the bullish argument and leave it vulnerable to a drop to $0.114.
What’s driving the protests?
Investors, as well as the rest of the market, are still confused as to why Graph’s price is rising every day. However, the agreement will be announced on November 7, which will mark the beginning of a “new era.” Anticipation of this may be the driving factor behind this rally.
Big news coming soon 👀
🗓️ Mark your calendars – November 7th!
Graph is entering a new era. are you ready? pic.twitter.com/tX1m5sDUvh
— Graph (@graphprotocol) November 3, 2023
However, in typical crypto whale fashion, large wallet holders took profits without knowing the contents of the announcement. Addresses holding between 10 million and 100 million GRT sold their holdings in the past few hours, dumping nearly 180 million GRT worth nearly $27 million in one day.
Whale holding chart. Source: Santiment
This group of investors has had a huge impact on price movements in the past, which makes their current actions concerning. If the expected announcement on November 7 fails to impress, investors in the network will join these whales in selling their GRT for profit.
The MVRV rate confirms the very high likelihood of this happening. The market value to realized value ratio (MVRV) is a metric used to evaluate the average gain/loss made by investors purchasing an asset. The 30-day MVRV ratio measures the average gain/loss for investors who purchased an asset in the past month.
For GRT, the 30-day MVRV ratio is 37%, indicating that investors who purchased the token in the past month made a profit of 37%. These investors tend to sell their stocks to make a profit, which can lead to a sell-off. As can be seen from the chart, when the MVRV reaches above 12%, the GRT undergoes a substantial correction; therefore, this area is called the danger zone.
MVRV provided by The Graph. Source: Santiment
The sustainability of the rally therefore depends on upcoming announcements, which could disrupt or create bullish sentiment on The Graph.
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According to FXStreet