Gridcoin has continued drifting higher since the last major rally at the end of October. Price is now approaching the previous high at 3900 Satoshis, which was put in on the 25th of October. Although GRC is in a bull market, the buy side of the orderbook has thinned considerably since my last Gridcoin technical analysis article. In my last piece, the orderbook had about 47 BTC in buy orders stacked at various levels below 0.00002959. Not so much orders now! GRC is now trading at 0.00003412, and the orderbook is now displaying about 16.5 BTC in buy orders. About a third of what it was at the end of October. However, I believe there is a good explanation for this. Since there haven’t been any large dumps of GRC on Poloniex/Bittrex, those buyers most likely got tired of waiting for sellers to hit their bids, and instead decided to hit the seller’s offers. This behavior is probably responsible for the gradual increase in price over the past twenty days.
The 0.000032 level is a fairly established former resistance area. Price slipped above this level on the 18th, so 0.000032 is very likely to now act as support.
There is another key event taking place today, which has the potential to alter market dynamics. The block reward for Gridcoin is reduced to 50 coins per block, down from 75. This reduction has the effect of further reducing the total daily minted coins to 48,000. This is the final block reward reduction in GRC’s schedule. At current market prices (0.000034), it will take approximately 1.6 BTC worth of daily buy orders to absorb the 48,000 daily minted supply of GRC going forward.
Disclaimer: This is not trading/investment advice! Traderman is an investor in Gridcoin.
Chart source: https://poloniex.com/exchange#btc_grc
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