On November 8, GRASS — the native token of Solana's Decentralized Physical Infrastructure Networks (DePIN) project — surged to an all-time high of $3.95. However, declining bullish momentum and intensified profit-taking have triggered a 27% price drop. This analysis examines key factors driving GRASS's downturn and potential future trajectories.
Key Market Indicators Signal Bearish Momentum
Rising Selling Pressure
As of writing, GRASS trades at $2.78, reflecting a 13% decline in 24 hours. Technical indicators reveal accelerating sell-offs:
- Relative Strength Index (RSI): Currently at 44.80 (downward trend), indicating growing dominance of sellers over buyers.
- Chaikin Money Flow (CMF): At -0.04, confirming stronger capital outflow than inflow — a classic bearish signal.
👉 Why traders are exiting GRASS positions
Futures Market Contrasts Spot Trends
Despite the price slump, futures traders maintain optimism:
- Positive Funding Rate (0.025%): Shows higher demand for long positions, suggesting expectations of a rebound.
- This divergence highlights ongoing speculative interest in GRASS's recovery potential.
Price Prediction: Critical Support Levels to Watch
GRASS currently tests crucial support at $2.65. Key scenarios:
Bearish Breakout:
- Breakdown below $2.65 could push prices toward **$2.26**.
- Failure to hold this level may result in a drop below $2**, targeting **$1.86.
Bullish Reversal:
- Reclaiming $3.22** resistance could reignite momentum toward the ATH of **$3.95.
FAQs: Addressing Key Investor Concerns
Q1: What caused GRASS's sudden price drop?
A: Profit-taking after its ATH peak, compounded by weakening RSI and CMF indicators, fueled the 27% decline.
Q2: Are futures traders still bullish on GRASS?
A: Yes — the positive funding rate indicates sustained demand for long positions despite spot market sell-offs.
Q3: What’s the next critical support level for GRASS?
A: $2.65 is the immediate support; a breach may trigger further declines toward $2.26 or lower.
Q4: Can GRASS regain its all-time high?
A: Possible if buying pressure resurges, but current technicals favor short-term downside risks.
👉 Expert insights on Solana DePIN projects
Conclusion: Navigating GRASS's Volatility
While GRASS faces significant selling pressure, diverging futures market activity suggests lingering bullish sentiment. Traders should monitor:
- RSI/CMF trends for momentum shifts.
- $2.65 support as a make-or-break level.
- Regulatory updates affecting DePIN tokens.
Disclaimer: This analysis is informational only. Conduct independent research and consult financial advisors before investing. Market conditions can change rapidly.
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