Nov 9, 2024
6thTrade
The recent price surge in GRASS, up by an impressive 187.99% over the past week, appears driven by the success of its airdrop and Bitcoin reaching new all-time highs. Alongside this, the anticipated listing of GRASS on Binance Futures with up to 75x leverage has added fuel to the bullish momentum.
Despite this upward drive, caution may be warranted. The Relative Strength Index (RSI) shows that GRASS is currently in overbought territory, indicating that buying pressure might be waning. With the RSI at 71.8, up from 55 just two days prior, the asset has entered the overbought zone, suggesting the potential for a near-term price correction. RSI readings above 70 typically signal overbought conditions, while values below 30 suggest oversold territory. Following recent rapid gains, this level hints at potential overheating, and a cooling-off phase may be on the horizon.
Moreover, GRASS’s cumulative staked amount has stabilized at 26.6 million since November 6, following a slight drop from an earlier peak. This leveling out reflects a consistent pattern among committed stakers, suggesting that active staking has settled as long-term investors hold their positions. Tracking this staked metric offers insight into investor confidence, as a high staked amount implies reduced selling pressure, potentially supporting price stability. In early November, the staked amount briefly approached 28 million before settling at its current level, signaling a shift to a stable, core group of long-term holders.
On the price forecast front, a potential 28.5% correction could be on the horizon. The Ichimoku Cloud chart for GRASS shows strong bullish momentum, with prices well above the cloud. However, if prices pull back, the first support level is around the upper cloud edge at approximately $2.9, while the lower edge at $2.5 represents a key support zone in the event of a deeper retracement.
Still, if Bitcoin’s momentum remains strong and the Binance listing garners further interest, GRASS could push higher, potentially surpassing the $4 mark, positioning it as one of the most-watched coins within the Solana ecosystem.
Disclaimer: The content of this article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are highly volatile and may lead to substantial financial loss. Always perform your own research and consult a qualified financial advisor before making any investment decisions. The opinions expressed are solely those of the author and do not represent the views of the publisher or its affiliates. Investing in cryptocurrencies involves inherent risks, and past performance is not a reliable indicator of future results. Please exercise caution.