The graph (GRT) has been trading between $0.385 and $0.525 since the beginning of the year. It may be creating a bullish pattern.
Since reaching an all-time high of $2.88 on February 12 last year, GRT has been falling below the descending resistance line. The downtrend led to a low of $0.30 on February 24 this year. Since then, the price has been rising.
Due to the longer upper wick, it is uncertain if GRT has broken out of the resistance line or if it is still following the resistance line. However, the price appears to have broken out, although it has yet to start a major advance.
More importantly, both the RSI and the MACD have produced significant bullish divergences (green lines). Notably, this is the first divergence on the weekly time frame.
If the advance continues, the next nearest resistance area will be $1.10.
The daily chart shows that GRT is trading within the $0.385 resistance area. This area acted as support in February before prices fell in March.
If the price manages to reclaim it, it could move all the way up to the $0.525 resistance.
Cryptocurrency trader @CryptoKindie tweeted a GRT chart, noting that the price is forming a bullish pattern.
The move since January 25 does resemble a reversal head and shoulders top, which is considered a bullish pattern.
Also, the pattern is combined with a bullish divergence from the RSI and MACD (green line).
Therefore, the most likely scenario suggests that GRT will break out from the $0.385 resistance area and head towards $0.525.
Short-term GRT exercise
Finally, the two-hour chart shows that GRT has been trading inside a falling, expanding wedge since April 11. This type of wedge is considered a bullish pattern, meaning a breakout from it is expected in most cases.
This is consistent with the daily and weekly time frame readings.
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