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$GRAM is finding support at a key moving average after a strong rejection at a familiar trendline, with analysis highlighting the next possible scenarios.
After the rally that came from its rebrand from TON, $GRAM has started trending lower again. For context, the coin jumped 22% between July 1 and 4, spurred by momentum from the rebrand and a broader market rebound.
Now, with momentum fading, the 200-day simple moving average is preventing $GRAM from seeing lower prices. The major question here remains if this support will hold and what would happen next in any scenario.
200-Day MA Provides Short-Term Support
Yesterday, $GRAM dipped to a low of $1.55, briefly dropping below the 200-day MA at $1.56. However, buying pressure emerged from this dynamic support, ensuring that the coin closed at $1.58, above the moving average.
Notably, the 200 MA has continued to support prices since it broke above in early May. Wednesday’s repeat reinforces the indicator’s importance to bulls. While this is positive for $GRAM, momentum remains weak.
Prices continue to retest this support, suggesting that $GRAM does not have sustained upward momentum. Additionally, repeated drops to the 200 MA put the support at risk of collapsing, particularly if bears continue to dominate the broader crypto market proceedings.
$GRAM Trapped Below Descending Trendline
Moreover, $GRAM continues to trade beneath a downward resistance trendline that has suppressed prices for weeks now. After the notable 118% rally in the first seven days of May, the asset peaked at $2.91.
$GRAM Below Descending Trendline
Since then, the altcoin has been trending within a descending trendline, with repeated upside attempts capped near this resistance. For context, the June 1 rebound to $2.28 ended near the downward-sloping resistance. The recent rejection at $1.84 on July 4 also aligned with this dynamic supply zone.
As long as $GRAM continues to trend below this trendline, it cannot sustainably target higher prices. Interestingly, this resistance is beginning to compress prices around the support below, suggesting a decisive move is on the horizon.
If the 200-day MA continues to hold, $GRAM could rebound to the descending trendline, currently around $1.70, representing a 7.5% increase from the current market price of $1.58. Breaking above with strong volume sets $GRAM up for a stronger upsurge. The May high of $2.91, where the trendline started, is a probable target, an 84% increase from here.
Support Level to Watch
However, in the case where the 200-day MA fails to continue holding, $GRAM could drop lower. The closest support is the key area between $1.52 and $1.43, a 4% to 9% decline from here.
Notably, this was a former resistance area, with $GRAM peaking at this level on April 11. However, it broke above it in May and has continued to hold this support since then, despite repeated tests. This would be the most likely target if $GRAM loses the 200 MA. Breaching this support puts the coin at risk of a much larger downtrend.
