Gram [GRAM], formerly Toncoin, fell 5.77% in the past 24 hours. On the 23rd of October, the altcoin’s price fell 11.08% in just one hour, from $1.30 to $1.15. Incidentally, this price dip was the first time GRAM fell below the $1.30 demand zone that has been kept intact since early August.
The price drop caused a cascade of long liquidations. CoinGlass liquidation data revealed that $5.83 million in long liquidations across all exchanges was recorded on Friday, compared to just $240.3k in short liquidations.
Buyer exhaustion at a key support zone combined with a liquidation cascade helped explain the recent GRAM losses.
How traders can capitalize on GRAM’s bearish bias
Toward the end of September, the altcoin rallied to a high of $1.74. Since it had also breached the $1.56 high made in August, it appeared to confirm a bullish price trend.
Strong derivatives and spot volumes back then, combined with bullish expectations for Bitcoin [BTC] as it rallied back above $80k, reinforced the positive GRAM outlook.
Since then, the market-wide buyer apathy led to a steep pullback for the altcoin. It dropped into the $1.30-$1.35 demand zone, highlighted in cyan. This region has been defended for nearly three months, but failed in the past 24 hours.
The A/D indicator highlighted a lack of buying pressure in recent days. The H4 MACD made a bearish crossover earlier in the week, drawing attention to the rising bearish momentum.
Moreover, swing traders should remain bearish because the price has decisively broken below both a key support zone and the previous swing low.
GRAM traders’ call to action: Sell the bounce!
The $1.30-$1.35 former demand zone is now a supply zone. GRAM could be oversold in the short-term and has the potential to bounce to this supply zone before another bearish impulse move.
Traders can wait for such a retest, and the next bearish crossover on the MACD, to look to go short. Meanwhile, a sustained recovery back above $1.36 would indicate a bounce that could reach $1.50-$1.60 before running out of steam.
Final Summary
- GRAM, formerly Toncoin, saw an intense wave of selling that led to an 11% price drop within an hour of trading on Friday.
- Heavy spot selling volume and a cascade of long liquidations helped fuel the swift price drop to $1.15, shifting swing traders’ bias bearishly.
