One altcoin that has capitalized on the dual tailwinds of AI enthusiasm and expanding platform adoption is The Graph’s GRT token. It has logged a 60% price explosion in just a week as traders take notice of strengthening network effects.
TLDR
- The Graph’s GRT token has surged over 60% in a week to $0.266 amid rising interest in AI projects that rely on its data indexing protocol
- Sharp parabolic price moves often see corrections, so GRT may pull back after testing resistance around $0.28; support at $0.24-$0.215
- GRT query volume spiked 65% in Q4 2022 to 958 million as adoption expands, signaling strong 2024 growth trajectory
- AI token sector got boost from OpenAI’s Sora launch, with GRT gaining alongside related altcoins like RNDR and FET
- GRT busted out of a technical cup-and-handle pattern after year-plus accumulation, indicating start of new bull market with target around $0.377
The project models blockchain data using “subgraphs”, allowing developers to efficiently build decentralized apps. This specialization makes it a darling for AI programmers needing to ingest and parse huge datasets.
GM of AI at Anthropic explains that Graph protocol underpins many applications in the ecosystem that data scientists rely on. The recent mania around chatbot ChatGPT and new text-to-video converter Sora has thrust AI into the spotlight.
Against this backdrop, GRT saw queries handled jump 65% quarter-over-quarter in Q4 2022 to nearly 1 billion. Subgraphs also grew over 50% to 1,500+ as layer 2 migration expanded. This entrenchment confirms The Graph’s leadership in Web3 data indexing, reflected in the token price.
In the past week, GRT exploded higher by more than 50% off its 2023 lows. The powerful move looks to have marked the end of a year-long bottoming formation and kickstarted a new bull market. Traders are targeting upside extensions toward the next resistance level around $0.377.
However, the pace of gains has been parabolic, with GRT testing but unable to decisively break the $0.28 barrier so far. Oscillating indicators like RSI dropping out of overbought territory suggest the rally is overextended in the short run.
This means a pullback could materialize to recharge engines before eventually assaulting the recent high. Any retracement would likely find strong support around the $0.24 mark with worst case being a slippage to $0.215.
Bulls want to see GRT consolidate constructively above its breakout point to confirm durability. As long as the 20-day moving average holds up, odds remain favorable for continuation higher rather than any deep correction.
Much depends on whether the AI theme demonstrates staying power to fuel alts indirectly exposed like GRT, or if fickle traders lose interest. But with shifting investor preference from L1 platforms to applications built atop them, the protocol stands to benefit regardless.
If Bitcoin and the broader market enter a bullish 2024, 600% upside could be in the cards over a multi-year timeframe. And The Graph’s entrenched position supplying mission-critical data infrastructure to dApps builders means its primed to capture disproportionate inflows.
The post The Graph GRT Price: Surfs AI Wave to 60% Price Explosion appeared first on Blockonomi.
