The GRASS token has rapidly become one of the most talked-about projects within the DePIN ecosystem, captivating both analysts and investors alike. As a Layer-2 platform built on the Solana blockchain, the Grass platform offers an innovative approach by enabling users to share their unused internet bandwidth to train AI models via a browser extension. Given its cutting-edge technology, it was no surprise that the token’s launch and airdrop on October 28th attracted considerable anticipation.
Challenges Faced During the Airdrop
Despite its potential, the airdrop did not go off without a hitch. Several issues arose, including a significant three-hour outage, which affected the token’s initial performance. On October 29th, GRASS reached its peak, but it was the period between October 31st and November 2nd that saw a remarkable rally, pushing the token’s value past the $1.50 mark. After hitting a high of $1.9175 on November 2nd, the price experienced a slowdown, stabilizing below the $1.75 threshold and currently trading around $1.45. Analysts are now contemplating whether this is an opportune moment to invest, given the token’s rejection of the $2 mark and potential for further pullbacks.
A Rocky Start for GRASS
The initial trading of GRASS commenced on October 28th, but technical setbacks delayed the airdrop and launch. Users faced obstacles, such as being unable to access their tokens via Phantom wallets, compounded by the rush to claim tokens during the power outage. Additionally, some transactions were flagged, resulting in disqualifications from the airdrop.
Despite these challenges, a total of 1 billion GRASS tokens were distributed, with 10% allocated to early supporters and contributors. While it is still early to fully assess the impact of these issues, the token has shown promising performance in terms of price.
Attempts to Surpass the $2 Mark
Analyzing GRASS’s price movements is challenging due to its recent launch. Nevertheless, analysts have noted a bullish trend in the token’s lower timeframes, with trading volumes remaining above average over the past 24 hours. Since October 30th, both the on-balance volume and the token’s price have seen an upward trajectory, indicating buying pressure and potential price gains in the near future.
Despite this optimism, GRASS has encountered resistance at the $2 level, establishing it as a psychological barrier. Analysts anticipate a potential dip to $1.75, driven by a bearish divergence reflected in the RSI.
Potential for Further Decline
Technical analysis reveals two notable liquidity pools at $1.56 and $1.96. Currently, the token price is closer to the $1.56 liquidity pool, with a rejection of the $1.96 level. Given the bearish momentum and proximity to the $1.56 liquidity pool, traders and investors should be prepared for a possible dip below $1.75. Swing traders and new buyers might consider waiting for the token to retest the $1.56 or even $1.40 levels before entering a position.
In conclusion, while the GRASS token has experienced a tumultuous start, its innovative technology and potential for growth make it a project worth monitoring. As the market evolves, keeping an eye on GRASS’s price action and technical indicators will be crucial for making informed investment decisions.
