The Graph (GRT) has been in a negative mood since May 22, 2024, falling from $0.35 to a low of $0.15. The current price of GRT stands at $0.18, and traders should keep in mind that a risk of further decline still persists.
Crypto analysts are concerned that should Bitcoin fall again below $60,000, it could trigger a larger sell-off, potentially making it challenging for GRT to maintain its current price levels. At the same time, the macroeconomic landscape remains uncertain; major central banks continue to keep interest rates at high levels, and risk-on assets such as cryptocurrencies could suffer even more in such conditions.
So where is the price of The Graph (GRT) going next, and what can we expect from August 2024?
Today, Crypto Lists will discuss GRT price estimates from a technical and fundamental analysis perspective. Please note that there are also many other factors to consider when entering a position, such as your time horizon, willingness to risk, and how much margin you have if trading with leverage.
The popularity of The Graph is growing
The Graph is an open-source software that is used to collect, process, and store data from various blockchain applications to facilitate information retrieval. It was originally launched on the Ethereum blockchain, and it aims to assist developers in accessing and utilizing relevant data, thereby enhancing the efficiency of their decentralized applications (dApps).
In a nutshell, The Graph analyzes and gathers blockchain data before storing it into various indices, called Subgraphs, allowing any application to send a query to its protocol and receive an immediate response. Queries are posed by dapps through GraphQL, a widely used language originally created by Facebook to gather data for a user’s news feed.
It is important to say that users of The Graph who provide services to the network, known as indexers and delegators, play a crucial role in processing data and delivering it to end-users and applications. To stay informed about the latest developments with The Graph, users can bookmark and regularly check the official blog for updates.
The popularity of The Graph is growing and it is already being used by popular Ethereum dapps like Aave, Curve, and Uniswap. Since 2019, The Graph has raised $19.5 million through token sales, including $10 million from a public sale in October 2020. About 21% of the initial token supply of 10 billion GRT has been sold to investors, including notable names like Coinbase Ventures, Digital Currency Group, and Multicoin Capital.
The Graph’s native cryptocurrency, GRT, is used to ensure the integrity of the data secured within its network. Any user, whether they are indexers, curators or delegators, must stake GRT to perform their roles, and, in return, earn fees from the network. Anyone who owns and stakes GRT tokens can take part in shaping the platform by voting on proposals that determine its governance and usage rules.
Supply: 6,900,000,000 / 10,000,000,000
Release date: October 22, 2020
Description: Discover The Graph and be part of the cryptocurrency revolution.
Risk warning: Trading, buying or selling crypto currencies is extremely risky and not for everyone. Do not risk money that you could not afford to loose.
The Graph (GRT) could be an interesting story
Investors might consider adding GRT to their portfolios if they believe that decentralized applications will consistently need extensive blockchain data to function effectively. Investors should also be aware that while The Graph initially introduced 10 billion GRT tokens in 2020, the total supply is expected to grow by about 3% annually. Additionally, an estimated 1% of tokens will be removed from circulation each year.
On the other side, the Graph could be particularly appealing to developers looking to build blockchain-based applications that require efficient access to and validation of blockchain data. Finally, should The Graph prove to solve key problems for dapp users, it could become an essential tool in linking all applications built on the blockchain.
GRT has been in a negative mood since May 22, 2024, and the decline in this crypto’s price reflects a significant decrease in the number of large trades involving GRT. Large trades often contribute significantly to the liquidity and a decrease in such trades can reduce the overall liquidity, making it more difficult for traders to buy or sell large amounts of GRT without affecting the market price.
With reduced liquidity, the market may become more susceptible to price swings and potential investors should keep in mind that smaller trades could have a more pronounced impact on GRT’s price then. Crypto analysts are now familiar with how quickly the price of this crypto can change, but the wider dynamics of the cryptocurrency market also continue to play an important role in determining the price of GRT.
Technical analysis for GRT
The Graph (GRT) has weakened from $0.35 to $0.15 since May 22, 2024, and the current price stands at $0.18. A decline in the price can be attributed to several factors, with the most significant being a shift in traders’ sentiment from positive to negative. As long the price of GRT is below the resistance which I marked on the chart below, the risk of further decline still persists.
Important support & resistance levels for GRT
On this chart (the period from November 2023), I marked important support and resistance levels that can help traders understand where the price could move. GRT has weakened from its recent highs, but if the price advances above $0.25, the next target could be an important resistance level at $0.30. The strong support level is $0.15, and if the price breaks this level, it would be a “SELL” signal, and we have the open way to $0.10.
What speaks for the rise in the GRT price
General market sentiment is an important factor that influences GRT’s price but positive news, partnerships, and developments related to The Graph can attract investors and traders, pushing the price up. Analysts and traders often closely watch the activity of crypto whales because the behavior of crypto whales can influence market sentiment and an increase in the number of big transactions for GRT is something that could drive the price higher. When a whale makes a substantial buy, it can be seen as a bullish sign, potentially attracting more buyers. For the bulls to take again control of price movement, a move above $0.25 would be beneficial.
What indicates the downfall of GRT
The Graph (GRT) is an unpredictable investment, and because of this, investors should continue to be very cautious in the case of this cryptocurrency. GRT is known for its significant price swings but the value of GRT is tied to the adoption and usage of The Graph’s technology. Fluctuations in how widely its services are adopted by developers and decentralized applications can affect its price. The Graph operates in a competitive space with other projects offering similar data indexing and querying services and new innovations or competitive advancements can impact GRT’s market position.
What do analysts and experts say?
The popularity of The Graph is growing and it is already being used by popular Ethereum dapps like Aave, Curve, and Uniswap. However, crypto analysts are concerned that should Bitcoin fall again below $60,000, it could trigger a larger sell-off, potentially making it challenging for GRT to maintain its current price levels. There has also been a significant drop in the number of whale transactions for GRT in the last two months, and when whales reduce their trading activity (transactions worth $100,000 and above), it usually indicates that they are losing confidence in the underlying coin’s short-term price prospects. Because of this, some crypto analysts say that the fact that bigger investors have lost interest in accumulating GRT indicates that we will continue to see low prices for this crypto.
Disclaimer: Crypto is extremely volatile and not suitable for everyone to invest in. Never speculate with money that you cannot afford to lose. The information on this site is presented for educational purposes only and should not be construed as investment or financial advice.
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