Bitrabo Editorial
The price of The Graph (GRT) cryptocurrency has recently seen an increase of 18% since hitting its local low of $0.11 on May 11, 2023. This surge in price can be attributed to the increase in activity among crypto whales, or large cryptocurrency investors, according to on-chain data.
As one of the leading projects in the crypto-AI field, The Graph has garnered the attention of crypto whales in the past week. These investors have been increasing their holdings of the GRT token, and have added 70 million GRT to their wallets between May 23 and May 31 alone. The order books of cryptocurrency exchanges also indicate that these bullish whales are influencing strategic investors to buy into the cryptocurrency. This accumulation frenzy could persuade other investors to become bullish as well.
Supply Shortage Sparks Competition Among Buyers
Not only are bullish traders piling up demand for GRT, but struggle to find supply. Currently, holders are willing to buy 29.3 million GRT tokens, yet sellers have only offered 22.9 million tokens for sale. With a supply shortage of 6.2 million GRT, buyers will have to compete against one another just to purchase some of these tokens.
Whenever demand for an asset exceeds current supply, there is usually upward pressure on the asset’s price as buyers struggle to outcompete each other. With this in mind, we can expect the price of GRT to increase in the coming days.
Possible Price Targets for GRT
With the accumulation frenzy among whale transactions and the supply shortage across exchanges, it is possible that GRT prices could continue to rise in the coming days. In fact, IntoTheBlock’s Global In/Out of The Money Around Price (GIOM) data suggests that GRT prices could rise up to $0.18 per token. However, investors who bought 638 million GRT at an average price of $0.15 may put up a sell-wall that could act as a major initial resistance for the cryptocurrency. If investors can overcome this obstacle, GRT prices may continue to rise.
On the other hand, if GRT drops below its critical support level of $0.10, the bears may invalidate the bullish prediction. 1.52 billion GRT tokens have been purchased at an average price of $0.10 by 9,740 different investors, which could provide support for GRT prices. However, if this support level is breached, GRT prices may fall as low as $0.08.
Disclaimer
Remember that this article is for informational purposes only, and does not constitute financial or investment advice. Always conduct your own research and consult with a professional before making any financial decisions.