GRIFFAIN token price has witnessed a resurgence after plummeting from a high of $0.65 on January 19 to a low of $0.12 yesterday.
Now trading at $0.2296, the token has shown a remarkable 70.1% surge in the last 24 hours.
However, despite this impressive recovery, market sentiment remains cautious due to underlying technical indicators suggesting potential volatility ahead.
Why is the GRIFFAIN price rising?
Griffain, an AI-powered blockchain-based platform operating within the Solana ecosystem, aims to revolutionize decentralized finance (DeFi) by offering scalable solutions for token swaps, liquidity provision, and ecosystem growth by leveraging AI agents.
The project’s focus on leveraging Solana’s high throughput and low transaction costs has made it an appealing choice for those engaged in DeFi activities.
The platform not only facilitates efficient token swaps through its decentralized exchange (DEX) but also encourages liquidity provision where participants can earn rewards, fostering a vibrant ecosystem.
The current price surge of GRIFFAIN can be attributed to several factors including positive developments within the project, community engagement, and possibly speculative trading.
In a recent post, Binance also mentioned Graffin terming it “an abstraction AI platform built on Solana, enable users to execute trades, mint NFTs, manage wallets, and even snipe tokens based on predefined conditions – all through simple natural language commands.”
This has caused optimism among investors who believe the token could get listed on Binance soon.
Technical analysis shows a cautious market sentiment
Looking at the technical analysis provides a more nuanced view of the token’s health.
The Relative Strength Index (RSI) recently bounced back from being oversold, which initially suggested a buying opportunity.
Yet, the RSI has now turned bearish, indicating that the momentum behind this surge might be fading.
This shift could lead to a period of consolidation or even a price drop if the current resistance levels hold.
Also, the daily price candlestick hit resistance just below the 9-day moving average (MA), turning bearish.
This scenario suggests that for GRIFFAIN to establish a more sustainable rebound, it would need to surge above both the 9-day and 21-day MAs.
Breaking these levels could signal stronger buying interest and potentially the start of a new upward trend.
However, the failure to do so might see the price retreating to previous support levels or even lower, as investors and traders reassess their positions.
Investors and potential buyers should approach GRIFFAIN with a strategy that balances optimism with caution.
The immediate future might see more volatility, especially given the bearish indicators.
Those with a short-term investment horizon might wait for a clear breakout above critical resistance levels or look for a dip to buy at lower support levels.
For long-term investors, the current price action might be seen as part of a stabilization phase following a significant drop, offering an opportunity to accumulate tokens if one believes in the project’s vision and the broader DeFi trend on Solana.
The post GRIFFAIN token recovers after sharp drop, but risks remain appeared first on Invezz
