Is GRASS Token a Good Investment? Analysts See a Deeper Pullback After a Rough Start

GRASS token, one of the latest DePIN projects, attracts significant attention from analysts and the investing public. As a Layer-2 platform on the Solana blockchain

GRASS, the native token of the latest DePIN project, has attracted the attention of investors and analysts alike. The Layer-2 platform on the Solana blockchain allows users to share their unused internet bandwidth to train AI models through a browser extension. As a result, the launch and airdrop of its token on October 28th were highly anticipated.

While the airdrop encountered some problems, including a three-hour outage, the token’s price rally was successful. Last October 29th, the token peaked at October 29th, then made a massive rally from October 31st until November 2nd, crossing the $1.50 level.

After reaching a high of $1.9175 on November 2nd, the token slowed down, settling below the $1.75 level and now trades at the $1.45 level. GRASS has encountered resistance at the $2 price, leading analysts to anticipate a deeper pullback. So, is this a good time to buy?

A Rough Start For GRASS

On October 28th, trading for GRASS began, but several problems delayed the token’s airdrop and launch. The team encountered technical difficulties, including users being unable to access their tokens on their Phantom wallets. Additionally, the rush to claim the tokens was hampered by the three-hour power outage. Some users also reported flagged transactions and being disqualified from the airdrop.

A total of 1 billion GRASS tokens were put into circulation, with 10% being allocated to early supporters and contributors. It’s still too early to assess the full impact of these issues on GRASS, but the token has performed well in terms of price.

Token Tries To Breach $2

Due to GRASS’s recent launch, analyzing its price action is difficult. However, on the chart’s lower timeframes, analysts observe a bullish trend. The token has above-average volume in the last 24 hours.

Furthermore, starting October 30th, the token’s on-balance volume and price both increased. In summary, there was buying pressure for the token, indicating potential price gains.

However, GRASS encountered resistance at $2, which is a crucial psychological level for the token in the short term. According to analysts, the price may decrease to $1.75 as the RSI shows bearish divergence.

Other Analysts See A Deeper Dive For GRASS

The analysts identified two significant liquidity pools on the technical charts at prices of $1.56 and $1.96. The current price is closer to the liquidity pool at $1.56, and the token seems to be rejecting the $1.96 level.

Given the bearish momentum and liquidity pool at $1.56, traders and holders can expect a price dip below $1,75. Swing traders or new buyers looking to enter a position may want to wait for the token to retest $1.56 or even $1.4.

The post’s featured image is from Pexels, and the chart is from TradingView