The Graphโs GRT Token Surges 60% in a Week Amid AI Enthusiasm and Platform Adoption
The Graphโs GRT token has experienced a significant surge in price, increasing by 60% in just one week. This surge is a result of growing interest in AI projects that rely on The Graphโs data indexing protocol. Traders are taking notice of the strengthening network effects associated with the token.
TLDR
- The Graphโs GRT token has surged over 60% in a week to $0.266.
- GRT may experience a pullback after testing resistance at $0.28, with support levels at $0.24-$0.215.
- GRT query volume spiked 65% in Q4 2022 to 958 million, indicating strong growth potential.
- The AI token sector received a boost from OpenAIโs Sora launch, benefiting altcoins like GRT, RNDR, and FET.
- GRT broke out of a cup-and-handle pattern, signaling the start of a new bull market with a target around $0.377.
The Graph specializes in modeling blockchain data using โsubgraphs,โ which allows developers to efficiently build decentralized apps. This specialization has made it popular among AI programmers who need to process large datasets.
Data scientists heavily rely on The Graphโs protocol for various applications within the ecosystem. Recent developments such as the popularity of chatbot ChatGPT and the introduction of the text-to-video converter Sora have increased the spotlight on AI.
In Q4 2022, GRT saw a significant increase in queries handled, jumping by 65% to nearly 1 billion. The number of subgraphs also grew by over 50% to more than 1,500 as layer 2 migration expanded. This solidifies The Graphโs position as a leader in Web3 data indexing, which is reflected in the tokenโs price.
Over the past week, GRT has experienced a powerful surge of over 50% from its 2023 lows. This surge indicates the end of a year-long bottoming formation and the beginning of a new bull market. Traders are now targeting further upside extensions towards the next resistance level at $0.377.
Possible Pullback and Future Potential
Despite the impressive gains, GRT has struggled to break through the $0.28 barrier decisively. Indicators such as the RSI dropping out of overbought territory suggest that the rally may be overextended in the short run.
A pullback could occur to recharge before attempting to surpass the recent high. Strong support is expected around the $0.24 mark, with a worst-case scenario of a decline to $0.215.
Bulls hope to see GRT consolidate above its breakout point to confirm its durability. As long as the 20-day moving average remains intact, there is a favorable chance for continued upward movement rather than a significant correction.
The future performance of GRT will depend on the staying power of the AI theme and whether it can fuel interest in altcoins indirectly associated with it. However, with investor preferences shifting towards applications built on L1 platforms, The Graphโs protocol is poised to benefit regardless.
If Bitcoin and the broader market experience a bullish trend in 2024, GRT could potentially see a 600% upside over a multi-year timeframe. The Graphโs established position as a supplier of mission-critical data infrastructure for dApp builders positions it well to attract significant inflows.
Hot Take: The Graphโs GRT Token Rides the Wave of AI Enthusiasm
The Graphโs GRT token has experienced a remarkable surge in price, driven by the growing interest in AI projects and expanding platform adoption. Traders are recognizing the strengthening network effects associated with the token, leading to a 60% increase in just one week.
The Graphโs specialization in modeling blockchain data using โsubgraphsโ has made it a favorite among AI programmers who need to process large datasets efficiently. The recent surge in query volume and the growth of subgraphs further solidify The Graphโs leadership in Web3 data indexing.
While a pullback may occur in the short run, GRTโs breakout from a cup-and-handle pattern indicates the start of a new bull market with significant growth potential. With the AI theme gaining traction and investor preferences shifting towards application-focused platforms, GRT is well-positioned for future success.
If Bitcoin and the broader market continue on a bullish trajectory, GRT could potentially see substantial upside over the next few years. As an essential provider of data infrastructure for decentralized app builders, The Graph is primed to capture significant inflows.
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