GRT might see a short-term reversal, even with bullish on-chain indicators

• The Graph (GRT) has seen a 100% increase in value since October 2023.
• Santiment reports significant activity from large-scale investors in the altcoin market.
• Technical indicators suggest a higher probability of a bearish trend for GRT.

The Graph has seen almost a 100% increase in its value since October 19, 2023, and it is predicted to maintain this upward trend, as per the data from the blockchain analytics firm Santiment. In a recent post, Santiment highlighted that there has been significant activity from large-scale investors, or “whales”, in the altcoin market, with a noticeable increase in the creation of new on-chain addresses.

Santiment has disclosed that the mean dollar average for GRT is on a downward trajectory. This indicates that the bullish trend of the cryptocurrency could persist in the near term.

On-chain data analysis reveals that The Graph has experienced its peak whale activity since February of the current year. Per the post by Santiment, 149 individual transactions on the project’s network surpassed a value of $100K. Concurrently, the network saw the creation of 620 new addresses.

Despite the robust on-chain metrics, CoinMarketCap reported a 24-hour loss exceeding 5% for GRT. As a result, the altcoin was exchanging at $0.131 at the time of reporting. However, GRT’s weekly performance was still firmly in the positive territory, showing a gain of +25%.

Over the last 24 hours, the price of GRT has fallen beneath the crucial support level of $0.1365. If the cryptocurrency ends today’s daily trading below this threshold, it could face a downward correction to the $0.1135 support level in the coming days. On the other hand, if it closes above $0.1365 today, GRT could rise to $0.1750 within the next week.

Based on technical indicators, there is a higher probability of a bearish trend shortly. As of the latest update, the daily Moving Average Convergence Divergence (MACD) line is nearing the MACD Signal line. This could indicate an impending bearish trend reversal for GRT.

In the meantime, the daily Relative Strength Index (RSI) line has moved below the RSI Simple Moving Average (SMA) line in a bearish crossover within the last 48 hours. This indicates that sellers have taken a dominant position over buyers in the GRT market, which could potentially result in a further decline in GRT’s price over the next 24-48 hours.