The Graph Price Sits and Waits at a Key Support – What Next?

The Graph price is under pressure even after the developers announced major investments. GRT, its native token, is trading at $0.6320, which is about 53% below the highest level in November. This drop has brought its total market capitalization to more than $3.3 billion.

The Graph is a major blockchain project that is widely used by other platforms. These developers use its platform for indexing blockchain projects like Ethereum, Binance Smart Chain, and Solana. Other companies that use its subgraphs are Livepeer, Audius, Synthetix, and Curve Finance among others.

In the past few weeks, the blockchain network has announced major investments. On Wednesday, they announced that they had awarded a $48 million grant to The Guild. The Guild will help The Graph to improve its indexing system. 

The announcement came a few weeks after The Graph announced another investment in Semiotic AI. Semiotic is a California-based company that uses reinforcement learning and cryptography to develop autonomous decision-making tools for the blockchain. In the past 12 months, the developers have invested in four companies.

The Graph price forecast

The daily chart shows that The Graph price formed a strong resistance level at $1.0917 since August. It has struggled moving above this level several times before. It has moved slightly below the 25-day and 50-day moving averages. It is also at an important support level since it was the lowest level on September 29. This price was also the chin of the double-top pattern. 

Therefore, the path of the least resistance for the GRT price is to the downside. This could see it keep falling as bears target the key support level at $0.50, which is about 20% below the current level. This view will be invalidated if it moves above $0.75.

The Graph Price