In this update about GRT (The Graph), the focus is on the ongoing b-wave correction or a potential wave 4 correction. The chart is in a support zone, and the price reaction at this point is crucial for determining the future direction. Both wave counts are possible, but the chart's overall structure remains corrective, making it difficult to confidently predict a bullish turnaround.
Key Points:
Current Status: GRT has reached a new all-time low in the bear market, with initial rallies forming in three waves followed by a strong decline. There are no clear bullish signals yet, and the chart needs to form higher lows to confirm a reversal.
Support and Resistance Levels: The chart has a corrective price channel with an upper boundary line that might offer resistance if there's an upside breakout. The lower boundary line, though less defined, could provide support around 12 to 15 cents.
Retracement Levels: GRT has touched the 50% retracement level at 19.6 cents, but there was no significant reaction. The 100% extension of the C-wave is at 14.8 cents, a critical level to watch for support.
Potential Reversal: The micro count of the current correction is the same for both wave 4 and wave B. A wave 4 should ideally not break below the 50% Fibonacci level, and anything beyond the 61.8% retracement would shift the focus to a more bearish outlook.
Next Steps:
Monitoring for a Breakout: An upside breakout of the corrective price channel could indicate an early reversal. Until then, a further decline to 15.7 cents (the 61.8% retracement) or 14.8 cents (the 100% Fibonacci extension) is anticipated.
Fibonacci Confluence: The area between 14.8 and 15.7 cents shows Fibonacci confluence, making it a significant zone to watch for potential support and a reversal signal.
In summary, while the potential for a reversal exists, the current chart structure advises caution. Key support levels and a possible breakout from the corrective channel will be crucial indicators to watch.