GRT doing great from the start of 2023— will price rally sustain?

The circulating supply of GRT leaped over 1% in the past week.
The jump took place after the venture backer Framework withdrew 99M GRT tokens.
Prices rose by more than 20% over last week.

The Graph (GRT)’s circulating supply jumped over 1%this week after venture backer Framework withdrew 99 million GRT tokens worth some $7 million. It was the address’s most oversized withdrawal ever from GRT’s staking contract.

The Framework Ventures sent 99 million GRT to Coinbase after initiating transactions to withdraw from the GRT staking contract and the token lockup contract. By taking this step, Framework Ventures increased the circulating supply of the GRT token, which currently stands near $7.4 billion.

However, it’s still unconfirmed if Framework has sold its GRT tokens on Coinbase, as the fund did not return a request for comment. This is the second time Framework Ventures wallet triggered a transaction to withdraw GRT from The Graph’s Staking Proxy contract and into a Token Lockup Contract. The first time happened in Oct 2022.

The chart tale

The prices have formed a parallel channel, with current prices rising to break out of the channel. The volume records investors flooding the market and with upsurging OBV, it shows the holders are excited for the Web3 based protocol to evolve along with the developments in the notion. The 200-EMA floats above the current prices of $0.079, while the rest are claimed in the price rally. If the prices can successfully sustain above the break out level of $0.087, a solid bull run can be established with the rise aiming for the $0.100.

The CMF rockets for the rising prices in the positive zone to mark the bullish swing. The MACD records ascending buyer bars while the lines diverge for the bulls. The RSI rests in the overbought zone as the investors overwhelmingly purchase the token.

4-hour POV

The 4-hour time frame shows the staggered rise in prices. To reflect the same movement, the CMF oscillates about the baseline and marks the market to be neutral. The RSI bounces within the upper half of the range to mirror the buyer-influence. The pattern being formed shows that many holders have placed selling orders to book the profit in the price rally.

Conclusion

The GRT token is recovering well from the fiasco and is developing taking support of the Web3 evolutions. If viewed from the same lens, the protocol holds much more potential and may grow manifolds in the future. GRT holders to look out for the breakout level of $0.087.

Technical levels

Support levels: $0.052 and $0.031

Resistance levels: $0.100 and $0.117

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.