In the early morning of November 2nd, the GRASS coin price appeared to reach $2. However, it has fallen 23.34% in the last 24 hours, halting the impressive week-long upward trend and dropping the price to $1.35.
According to this analysis, the GRASS coin price can further decline from this level. Let me explain the reason.
GRASS sellers outpace enthusiastic buyers
GRASS is a Layer-2 decentralized physical infrastructure network (DePIN) project on Solana, which launched its native token on October 28th. In just a few days, the value of the altcoin surged by 100%, thanks to the Airdrop distribution of tokens to users.
However, this impressive increase has shrunk to 67% over the past week. Analyzing the daily chart, the Bull Bear Power (BBP) has fallen into negative territory. BBP measures the strength of buyers (bulls) and sellers (bears).
When BBP is green, it indicates the dominance of bulls, often leading to price increases. In this case, the decline in GRASS coin price coincides with a significant drop in the BBP index, indicating that the bears are currently in control.
Read more: What is DePIN (Decentralized Physical Infrastructure Network)?
Similarly, the Accumulation/Distribution (A/D) line also reinforces the bias that the GRASS coin price may continue to decline.
A/D examines the location where the price closes within a given period's range and multiplies that closing location by the trading Volume to assess the asset's supply and demand.
If the indicator's value rises, it indicates increasing demand. However, in this case, the indicator's grade has decreased into negative territory, indicating that distribution has exceeded accumulation, suggesting that the GRASS value may continue to decline.
GRASS Price Prediction: Further Decline Expected
Closely examining the 1-hour chart, the GRASS coin price has formed a double top pattern. A double top is a chart pattern that suggests a potential trend reversal, with two similar-height peaks separated by an intermediate trough.
The appearance of this pattern indicates that the cryptocurrency has reached a local high. Considering this outlook for the GRASS price, the token is likely to fall to $1.08.
Read more: Top 10 Best Altcoin Exchanges in 2024
However, if the bulls can defend the $1.29 support level, this prediction may be invalidated. In such a scenario, GRASS could rebound to $1.63.
