Grass crypto price surges to ATH, but gets overbought

Grass crypto token continued its strong rise, becoming one of the best-performing airdrops of the year.

Grass (GRASS) rose to an intraday high of $3.9587, representing a 2405% increase from its post-airdrop low. This rise pushed its market cap to over $893 million and pushed its fully diluted valuation to $3.6 billion.

Grass’s performance has differentiated itself from other newly minted altcoins that have experienced a sharp decline from their all-time highs. For example, the popular bridge network Wormhole (W) on Solana is down 87% from its post-listing high.

Other tokens such as Hamster Kombat, Notcoin, ZkSync, and PixelVerse experienced double-digit declines from their all-time highs.

Grass’ strong performance is likely tied to how the network initiated its airdrop. Approximately 10% of the token supply was allocated to Airdrop One, where approximately 100,000 users received 100 GRASS tokens to download and install the extension.

At the same time, developers introduced staking, resulting in approximately 35% of all tokens in circulation being staked, with an annual percentage yield (APY) of approximately 50%. By comparison, most tokens like Ethereum (ETH) and Solana (SOL) have a yield of less than 6%.

Analysts believe that if Grass Network received 300 TB of data monthly, its revenue could rise to around $300,000 per month. As the network scales, the cash distributed to investors is expected to increase.

Grass’s price is also driven by fear of missing out among retail traders, as evidenced by increased trading volume. This FOMO has intensified as investors remain optimistic that cryptocurrencies will continue to rise after Donald Trump wins the US election.

Grass crypto price is overbought on crypto.news’ GRASS chart

The hourly chart shows that the GRASS token has been on a strong bull run in recent days, rising from around $0.1 to nearly $4.

Grass remains well above the 50-period moving average, which is a positive indicator.

But there is a risk of withdrawal. The token formed a bearish engulfing pattern where a large bearish candlestick completely covered the previous bullish candlestick. Additionally, it has developed a rising wedge formation, with the Relative Strength Index and MACD reaching overbought levels and pointing downwards.

As a result, GRASS crypto price could pull back to retest $3 before potentially rebounding. In the long run, strong staking rewards could push the price above $5.

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