The Graph (GRT) price has retreated after it staged a remarkable rally that saw its price soar to a multi-month high of $0.8865. The coin is trading at $0.7735, which is still about 62% above the lowest level in July. The token has a market capitalization of more than $3.9 billion, making it the 33rd biggest coin in the world. It sits between Axie Infinity and Klaytn.
GRT rally fizzles
The Graph price has been in a strong bullish trend in the past few weeks. This performance is mostly because of the strong correlation that happens between Bitcoin and other altcoins.
As such, the price has risen at a time when Bitcoin has soared by about $16,000 in the past few weeks. The Graph is not alone. A quick look at CoinMarketCap shows that all altcoins have been on steady growth recently.
For starters, The Graph is a blockchain project that helps developers do indexing in various blockchains. Currently, the platform supports Ethereum, the second-biggest cryptocurrency in the world.
It achieves this by learning how to index by using subgraphs descriptions. These subgraph descriptions define the smart contracts of interest, the key events to focus on, and how to map these events. Today, many Ethereum developers use The Graph to answer these queries.
The Graph price prediction
Last month, in my initial The Graph price forecast, I predicted that the coin would bounce back. This prediction was right as the price has bounced back to the highest level since June.
On the four-hour chart, we see that the price managed to move above the key resistance level at $0.7987. This was an important level since it was the highest level on July 5.
The current retreat is expected since it is the formation of the handle part of the cup and handle pattern. It is still being supported by the 25-day and 50-day moving averages.
Therefore, the coin will likely resume the bullish momentum in bulls target the next key level at $1. This view will be confirmed if the price rises above this week’s high of $0.90. However, a drop below the key support at $0.6 will invalidate the bullish view.