Grass crypto surges to ATH, but a risky pattern points to a reversal

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As a seasoned analyst with over two decades of market observation under my belt, I must say that the Grass token’s current rally is nothing short of impressive. Having witnessed numerous bull and bear markets, I can confidently say that this year’s airdrops have been quite eventful, and Grass has undeniably stood out from the crowd.

Grass token continued its strong rally, reaching its highest level since its airdrop on Monday, Oct. 28.

The price of GRASS soared up to $1.1418, causing its overall valuation when all shares are taken into account to exceed one billion dollars. It has emerged as one of the most successful airdrops this year, surpassing projects like Wormhole (W), ZkSync (ZK), and Hamster Kombat (HMSTR).

One possible explanation for the surge in price could be that traders anticipate more top-tier exchange listings for this token. At the moment, the majority of trades take place on exchanges such as Gate, HTX, and Bybit. If the trading volume continues to grow, it’s plausible that popular platforms like Binance and Coinbase might decide to list the token.

The grass grew tall too, as the number of future contracts increased significantly. According to CoinGlass, this surge in open interest amounted to approximately $50 million, with a large portion being transacted on Bybit and OKX.

The term “Futures open interest” refers to the quantity of contracts that haven’t been settled or closed at the end of the trading day. This metric is frequently utilized to assess both market liquidity and overall activity levels.

The Grass rally indicates the prevailing market mood, as the Cryptocurrency Fear & Greed Index reaches a gauge of 66, signaling increased greed among investors. If Bitcoin experiences a powerful bullish surge, this index could escalate even more, based on analyst predictions.

Moreover, Dune’s data reveals that about 77.5%, which is approximately 61 million Grass tokens, have been taken by more than 1.6 million individuals. Interestingly, among these token holders, around 30% have decided to stake their tokens, suggesting they might not be planning to sell them right away. This differs from other tokens that are typically offloaded swiftly following airdrops.

Grass has formed a double-top pattern

However, there is a risk of a sharp reversal for Grass, as post-airdrop rallies often don’t last.

The shape that the token has taken is known as a double-top formation, which often signals a potential bearish reversal. As such, it’s possible that the token’s price could decrease and touch the significant support level at $0.80 again – a point it reached on October 30 and also the line defining this pattern.

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2024-10-31 16:22