End of bull run? The Graph awaits correction after a 200% GRT price rally
The Graph (GRT) price slipped on Feb. 8 alongside a broader correction across the top crypto assets.
GRT’s price plunged nearly 14.5% intraday to $0.18, showing signs of short-term upside exhaustion after rising over 200% earlier in the year. At its sessional high, the token was changing hands for $0.23 on Feb. 7, its highest level in nine months
Buying flocked to the GRT market amid a relatively stronger risk-on mood, led by the United States Federal Reserve’s slower interest rate hikes and a strong recovery witnessed in the Bitcoin (BTC) market, which typically influences altcoins into tailing the trend.
The GRT price rally also accompanied similar gains across data management platform tokens. This sector’s market capitalization doubled so far in 2023, with Ocean Protocol (OCEAN), Mask Network (MASK) and Band Protocol (BAND) recording over 200%, 100% and 60% gains, respectively.
The impressive GRT price rally has left The Graph as technically overbought, according to its daily relative strength index (RSI) indicator.
Notably, the daily RSI has exceeded 70, which traditional analysts consider an “overbought” signal. This typically leads to upside exhaustion followed by consolidation or a significant price correction.
In either case, GRT’s overbought status risks plunging its price by 30% in the next month to $0.13, a support level from the May–June 2022 consolidation session. The line also appears near the GRT/USD pair’s 200-day exponential moving average (200-day EMA; the blue wave) near $0.11.
Nevertheless, from a fundamental perspective, GRT looks stronger due to its healthy network metrics.
For instance, The Graph recorded 66% quarter-over-quarter growth in its revenue from query fees in Q4 2022 due to the migration of
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