The Graph's GRT token has seen a 2.57% price decline over the past 24 hours, with its value decreasing from $0.08821 to $0.08593 as of Saturday, September 2, 2023. This price drop brings The Graph's market capitalization down to $788.36 million. In this in-depth technical analysis, we will explore the key metrics behind this latest price movement and uncover insights into what it could mean for The Graph's future price action.

Summarizing the provided market data, The Graph's 24-hour trading volume stands at $15.12 million. Over the past hour, its price has dropped a further 0.11%, indicating continued downward momentum in the short term. Zooming out, The Graph is down 3.90% over the past week and has shed 22.56% of its value in the past month. Looking at an even wider time horizon, The Graph is trading 44.52% lower compared to six months ago.

With prices declining across short and long-term timeframes, The Graph is clearly in a downtrend. However, further analysis of the price chart can provide clues into support and resistance levels as well as buying or selling volumes. These metrics are key to determining whether The Graph is oversold at current levels and due for a trend reversal, or if further downside is likely.

Drilling down into the hourly price action, The Graph saw significant selling pressure yesterday that has bled into today's trading. Around midday yesterday, prices crashed through the key support around $0.09, which had been holding as support for the past week. With this support broken, The Graph fell as low as $0.08501 before finding buying interest.

However, this buying was not enough to push The Graph back above the broken $0.09 support, now turned resistance. So far today, The Graph has tested and failed to break above $0.09 resistance multiple times. Each rejection has resulted in a move lower, showing the bears are still in control of the momentum.

Looking at on-chain data, The Graph's network activity remains robust. The 30-day moving average of queries on the network stands at 3.02 billion, up from 2.76 billion at the start of August. Additionally, the number of active indexes has increased by 5.8% over the past month, and delegated stake on the network is near all-time highs. This indicates that despite the recent price weakness, development and usage of The Graph's decentralized indexing protocol continues to expand.

Is The Graph a Good Mid-Term Investment After the Recent Decline?

Given the strongly bearish technical setup combined with the ongoing adoption of The Graph's core indexing technology, is The Graph token poised for recovery or set to trade lower in the coming months?

On the bullish side, The Graph remains a leading player in the blockchain indexing and querying space. As more applications are built on networks like Ethereum, the need for efficient querying and indexing is only growing. The Graph has 'first mover' advantage in this niche, having established its protocol in 2018 before most competitors existed.

Additionally, The Graph benefits from its open architecture that allows anyone to build custom indexes and curate data for applications. This is a decentralized approach compared to competitors like Dune Analytics that rely on centrally created indexes. With the vision of becoming the decentralized API for web3, The Graph has potential upside as adoption of blockchain-based applications accelerates.

However, in the mid-term charts, The Graph shows no signs of bottoming yet. Looking at the weekly chart, The Graph had been in a steady uptrend through 2021 and early 2022, establishing a rising trendline support. This support was broken in May 2022 when The Graph crashed below $0.15 along with the broader crypto market downturn.

Since then, The Graph has found support around $0.10, which has turned resistance on several rallies over the past three months. Until The Graph can break out above this resistance, the mid-term trend remains bearish. The next key support zone lies between $0.06 to $0.07.

Therefore, while The Graph remains a promising project fundamentally, traders and investors should wait for a definitive trend change before going long. If The Graph's price can close a weekly candle above $0.15, that would signal the start of a new mid-term uptrend. Until then, further downside toward $0.06 looks likely in the coming months.

Should You Buy The Dip in The Graph After the Recent Decline?

Given the 2.57% 24-hour price decline, is now a good time to buy the dip and accumulate more GRT tokens? Or is it better to wait on the sidelines for a more definitive bottom?

On the bullish side, the recent dip has pulled The Graph's price down toward the next key support zone between $0.08 and $0.09. This area also lines up with the 0.786 Fibonacci retracement level of the previous uptrend in June 2022. In the past, The Graph has bounced strongly when reaching these lows around $0.08 to $0.09.

Checking the volume profile, we can see this zone marked a high volume node on the way up, suggesting strong buying interest. The spike in volume as The Graph tests support indicates buyers are still eager to accumulate around these lows.

However, on bearish side, The Graph is currently in a strong downtrend across short and long-term timeframes. Waiting for a definitive trend change is usually the lower risk approach versus trying to call the exact bottom. The recent move below the key $0.09 support adds to the bearish momentum.

Therefore, crypto traders should exercise patience and discipline when considering buying The Graph's current dip. Waiting for a weekly candle close back above $0.09 would provide greater confidence that this is indeed an optimal entry point. The potential upside from today's prices around $0.085 may be limited if The Graph continues trending lower in the coming weeks and months.

Conclusion

In summary, The Graph's 2.57% 24-hour price decline appears technically driven, resulting from a breakdown below the key $0.09 support level. While network adoption remains strong fundamentally, the charts are in a clearly bearish trend in the short and mid-term timeframes.

Crypto investors may consider building a small position around current support levels between $0.08 and $0.09. However, trading with the major trend points to further downside risk toward $0.06 before an extended bottom is likely. Waiting for a weekly candle close back above $0.09 resistance would provide a safer entry point with a favorable risk to reward.