22 NOV 2021 (NOV)- The Graph (GRT) Report Card

By quantdoge | Daily Crypto Risk Report | 22 Nov 2021


Investment Disclaimer:

  • I am not a registered investment, legal, or tax adviser or a broker/dealer, and all opinions expressed by me are from my research for educational purposes only.
  • Past performance presented here is not an indicator of future performance.
  • This post expresses my own opinion about the cryptocurrency mentioned herein and is not an offer to buy or sell, or a solicitation of any offer to buy or sell the cryptocurrency mentioned in this post.

1A. Top 3 Good News for GRT HODLERS !!!

2. How Graph Performs Relative to Other Cryptos ?372047c4cca246a2fccb3ebada5820a3b4fed195783212b0671bcaaff115f3a3.jpg

As of 21 Nov 2021, Graph has made a cumulative return of 50.76% since Jan 2020 and 50.81%  since Jan 2021. It is currently the 23th greatest performing crypto asset since Jan 2021 as compared to the other cryptocurrencies presented above.

3. Technical Analysis on The Graph

3.1. Volume Weighted Average Price (VWAP)

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VWAP is a technical indicator used by a trader to gauge the overall trend of an asset price movement. VWAP line (orange line) represents the volume-weighted average price (average price here is defined as the average of high, low and close prices) while close price line (blue line) represents the price when GRT2 is closed at the end of every single day. 

Whenever blue line (close price) is above orange line (VWAP), it indicates that the asset is gaining momentum and being traded higher than its average price level. This would represent a 'buy' opportunity for short-term momentum trader whom task is to trade following the trend while a longer term mean-revision trader might take it as a 'sell' opportunity, anticipating that the price of GRT2 (blue line) to fall to its average level (orange line).

Whenever blue line (close price) is below orange line (VWAP), it indicates that the asset is losing momentum and being traded lower than its average price level. This would represent a 'sell' opportunity for short-term momentum trader whom task is to trade following the trend while a longer term mean-revision trader might take it as a 'buy' opportunity, anticipating that the price of GRT2 (blue line) to rise to its average level (orange line).

As of 21 Nov 2021, VWAP is suggesting that GRT2 is losing momentum.

3.2. Moving Average Convergence Divergence (MACD)

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MACD is often used by trader as a momentum indicator. There are 2 lines that form the above charts, namely MACD (12, 26) lines and Signal(9) line, while the histogram is calculated by subtracting Signal (9) from MACD (12,26). Histogram would fall to the negative territory whenever MACD (12, 26) is trending at a lower level than Signal (9) and rise to the positive territory whenever MACD (12,26) is trending at a higher level than Signal (9).

MACD (12, 26) is computed by subtracting the 26-day exponential moving average (EMA) of GRT2 closing price from its 12-day EMA. 
Signal (9) on the other hand is calculated as the 9-day EMA of MACD (12,26). 

As MACD (12, 26) goes higher away from Signal (9), it signifies that GRT2 is gaining momentum and whenever it goes trends at a lower level than Signal (9),it signifies that GRT2 is losing momentum. 

As of 21 Nov 2021, MACD is suggesting that GRT2 is losing significant momentum.

3.3. Bollinger Band

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Bollinger band is often being used by mean-reversion trader as a gauge to assess how undervalued or overvalued an asset is. Its chart made up of 4 lines, namely:

- SMA (20) (blue line), which is the 20-day simple moving average price of GRT2
- Upper Band (orange line), which is computed by adding 2 standard deviations of GRT2 on SMA (20)
- Lower Band (red line) , which is computed by subtracting 2 standard deviations of GRT2 from SMA (20)
- Close (green line), which is the daily closing price of GRT2

Whenever close line (green) touches the lower band (red), it indicates that GRT2 is corrected too much and is being traded at an undervalued level, representing a 'buy' opportunity. On the other hand, whenever close line (green) touches the upper band (orange), it indicates that GRT2 is gaining too much momentum and is being traded at an overvalued level, thus indicating a 'sell' opportunity. 

As of 21 Nov 2021, Bollinger Band is suggesting that GRT2 is oversold.

3.4. Relative Strength Index (RSI)

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Just like Bollinger Band, Relative Strength Index is often being used by mean-reversion trader as a gauge to assess how undervalued or overvalued an asset is. There are 2 psychological levels, i.e. 30 and 70 in RSI. Whenever the RSI reaches 30, it indicates that GRT2 is corrected too much and is being traded at an undervalued level, representing a 'buy' opportunity. On the other hand, whenever RSI reaches 70, it indicates that GRT2 is gaining too much momentum and is being traded at an overvalued level, thus indicating a 'sell' opportunity. 

As of 21 Nov 2021, RSI is suggesting that GRT2 is oversold.

Based on the technical analysis presented above, quantdoge holds a bullish view on GRT, but I could be wrong, hence please make your careful due diligence before making any financial decision. 

4. The Graph Risk Profile

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Based on the 100-day 95% historical Value-at-Risk (VaR) profile of The Graph defined above, GRT seems to trade at a greater risk level on 21 Nov 2021 as compared to 10 days before on 11 Nov 2021, with its biggest pullback being seen at -25.56% on a single day during the last 100 days. However, I could be wrong, hence please make your careful due diligence before making any financial decision.

5. Price Simulation for Graph

How did quantdoge simulation perform vs the actual GRT price movement over the last week ?

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Over the last 7 days, GRT has been trading near the lower 25th percentile range of quantdoge simulations, indicating that GRT is oversold and undervalued. 

6. GRT Community Analytics

Number of GRT Followers In The Last 30 Days

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In the last 30 days alone, Graph followers have grown 10.06 % from 153,931 to 169,412 on Twitter and grown 5.18 % from 18,714 to 19,684 on Reddit.

Daily increment of Graph Twitter followers peaked on 12 Nov 2021 and its daily increment of Reddit followers peaked on 25 Oct 2021.


7. Google Trend Analytics

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The Graph reached its peak in Google Search on 2020-10-04 with a Google Score of 91
Over the last quarter, The Graph Google Score has increased 6.42 % from 66.25 to 70.5
Over the last 6 months, The Graph Google Score has increased 58.43 % from 44.5 to 70.5

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Based on Google searches, The Graph is most sought after in Solomon Islands, followed by Philippines and Bhutan this month.

If you like my analysis and articles, please follow me at @quantdoge for daily updates.

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quantdoge
quantdoge

Data scientist in crypto and blockchain space.


Daily Crypto Risk Report
Daily Crypto Risk Report

This blog was created by quantdoge, a data scientist in the cryptocurrency and blockchain space to publish daily risk reports on different cryptocurrencies. All published reports in this blog were analyzed with in-house algorithmic trading and quantitative risk management technology. ** Investment disclaimer: ** I am not a registered investment, legal, or tax adviser or a broker/dealer, and all opinions expressed by me are from my research for educational purposes only.

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