This Chart Pattern Restricts Price Growth In Graph Token; Keep Holding?

For the past seven months, the Graph token price has been falling in response to a wedge pattern. However, during this fall, the token price has retested the pattern converging trendlines multiple times, indicating the trades are respecting this technical and should also meet its potential target after pattern completion.

Key points:

• The coin price will remain in a bear trend until the wedge pattern is intact
• The Graph price faces high supply pressure at the $0.0664 mark.
• The intraday trading volume in the Graph is $428 Billion, indicating a 202% gain

Source- Tradingview

In theory, the falling wedge pattern reflects the loss of bearish momentum as the prices turned down from the resistance trendline fail to achieve deeper correction as before. Thus, a bullish breakout from the overhead resistance will complete this pattern and trigger a direction price rally. 

Coming to the current price scenario, the Graph token price showed an 11% jump earlier today. With a high volume spike, the long bullish candle tried to breach the weekly resistance of $0.0664. However, the intense supply pressure from above undermined these gains and pulled the price back below the mentioned resistance.

Over the past three weeks, this altcoin has shown numerous rejection candles at the $0.0662 resistance, indicating the sellers are actively defending this level. Thus, if the selling pressure persists, a potential bearish reversal may plunge the price to $0.0525 support.

On a contrary note, if the buyers manage to surpass the $0.0664 resistance, the prices could price 14% to revisit the patterns resistance trendline.

Technical indicator

MACD: the MACD and signal lines rising gradually indicate the gradually increasing bullish momentum. However, these slopes below the neutral line reflect that the price action is still under the seller’s control.

EMAs: the 20-and-100-day EMAs act as two dynamic resistance which assist sellers in prolonging the ongoing downfall.

Graph Token Price Intraday Levels

• Spot rate: $0.0662
• Trend: Bullish
• Volatility: High
• Resistance levels- $0.0664 and $0.0766
• Support levels- $0.058 and $0.025