SAN FRANCISCO – The Graph’s GRT token has experienced a surge of over 60% in just one week, reaching $0.266. This increase in value comes as interest in AI projects utilizing its data indexing protocol continues to grow.
As GRT reaches new heights, traders are keeping an eye on potential corrections. It is expected that GRT may pull back after testing resistance around $0.28 but could find support at $0.24-$0.215. The spike in GRT query volume by 65% in Q4 2022, reaching 958 million, indicates an expanding adoption and a promising growth trajectory for 2024.
The AI token sector received a boost from OpenAI’s Sora launch, benefiting GRT along with related altcoins like RNDR and FET. The technical cup-and-handle pattern GRT broke out of after a year-plus accumulation suggests the start of a new bull market, with a target price of around $0.377.
The project utilizes “subgraphs” to model blockchain data, providing a tool for developers to efficiently build decentralized apps. This specialization has made it a favorite among AI programmers in need of ingesting and parsing large datasets. The application of Graph protocol underpins many AI applications, particularly those in the ecosystem that data scientists rely on.
As the recent mania around chatbot ChatGPT and new text-to-video converter Sora thrusts AI into the spotlight, GRT saw a 65% increase in queries handled quarter-over-quarter in Q4 2022, reaching nearly 1 billion. Subgraphs also saw over 50% growth, with over 1,500 created, as layer 2 migration expanded. This solidifies The Graph’s leadership in Web3 data indexing, which is reflected in the token price.
While GRT has seen a significant increase in value off its 2023 lows, the rapid gains suggest a potential pullback to recharge before aiming for a new high. Indicators like RSI dropping out of overbought territory indicate that the rally may be overextended in the short run. Any retracement could find support around the $0.24 mark, with a worst-case scenario being a slippage to $0.215.
The protocol’s future success hinges on the durability of the AI theme, as well as shifting investor preferences from L1 platforms to applications built atop them. If Bitcoin and the broader market enter a bullish 2024, GRT could potentially see a 600% upside over a multi-year timeframe. The Graph’s entrenched position supplying mission-critical data infrastructure to dApps builders positions it to capture disproportionate inflows.