- The Graph price has surged by more than 20% in the past 24 hours.
- The coin has formed a head and shoulders pattern on the 4H chart.
The Graph price is doing well as investors reflect on the network’s growth. GRT, its native token, has risen by more than 20% in the past 24 hours and is trading at $0.3891. This price is significantly above its lowest level this week.
Why is GRT rising?
The Graph is a leading blockchain project that is in the API industry. It is backed by some of the best-known venture companies like JD Capital, South Park Commons, Digital Currency Group, and Collider Ventures among others.
Check out our article on buying The Graph if you’re wondering if The Graph is worth investing.
The platform offers a product known as subgraph that makes it possible for developers to query their networks in an easy method. Some of the top applications using The Graph are Uniswap, Synthetix Network, Decentraland, and Aragon among others.
The Graph ecosystem is made up of four key participants. There are developers who create new subgraphs or use the existing ones. Further, there are indexers, who operate a node to index data and serve queries, curators who organize data, and delegators who secure the network by delegating their GRT to indexers.
It is unclear why The Graph price has risen sharply on Tuesday since there is no major news about the protocol. This price action is likely because investors believe that the coin’s price is undervalued after this week’s crash.
Another possible reason is that the network activity is growing even as the cryptocurrency industry continue being under pressure. A look at its on-chain data shows that the number of subgraphs has risen sharply in the past few months.
The Graph price prediction
The daily chart shows that the GRT price has been under intense pressure in the past few months. During this period, the coin has collapsed by more than 71% from its highest level in 2021. The price has moved to the 25-day and 50-day moving averages. However, a closer look shows that it has formed a head and shoulders pattern that is shown in purple. The head of this pattern was along the 23.6% Fibonacci retracement level.
Therefore, there is a likelihood that the coin will have a bearish breakout in the coming weeks. This view will be confirmed if it manages to move below the support level at $0.3175. A drop below this level will retest the support at $0.300. Here is our eToro review, where you can buy The Graph.
