Why is GRASS up 82% in one week despite market weakness?

The cryptocurrency market has been volatile over the past few days, with Bitcoin hitting $70k on Monday before retracing to now trade below $67k.

However, while the broader market has underperformed, Grass (GRASS) has recorded excellent gains over the last seven days.

The coin is trading above $0.31 after adding 82% to its value during that period.

Its massive surge stands out amid heightened volatility in the broader crypto market.

While the prices of most crypto assets have not declined, risk appetite has taken a back seat amid the escalating war between the United States (US) and Iran.

The Middle East is caught up in the conflict as Iran continues attacking countries hosting US military bases.

Meanwhile, GRASS’s price hit the $0.35 level earlier today, reflecting growing sentiment toward smaller altcoins. 

Retail demand for this token has soared in the past few days, confirming a potential bullish shift.

Retail demand pushes GRASS’s price higher

GRASS has set itself up as one of the best performers in the market in recent days.

The coin rallied by 20% on Monday, crossing the $0.35 mark for the first time since January 17.

The rally comes as GRASS attracts renewed interest from retail investors.

Its Open Interest (OI), the metric tracking the notional value of outstanding futures contracts, increased to nearly $24 million on Tuesday from $22 million the previous day.

The OI was $10.63 million a week ago, indicating renewed retail interest.

However, it is still below the $148 million recorded in May when Grass traded around $2.60, underscoring the role of retail investors.

GRASS eyes further gains amid bullish outlook

The GRASS/USD 4-hour chart is bullish thanks to the recent rally.

The coin is currently sitting above the 50-day Exponential Moving Average (EMA) at $0.24 and the 100-day EMA at $0.30. 

The Relative Strength Index (RSI) is rising to 67 on the 4-hour chart, indicating a steady bullish momentum.

Furthermore, the Moving Average Convergence Divergence (MACD) indicator remains above its signal line, as the green histogram bars expand, adding further confluence to the bullish narrative.

If the MACD lines converged further above the zero line, traders would be tempted to increase their exposure, adding to buying pressure and increasing the odds of an extended breakout toward the next key hurdle at $0.40.

Pushing above the $0.40 resistance would pave the way for GRASS to hit the 200-day EMA at $0.51.

However, for the rally to continue, GRASS will need to defend the 100-day EMA support at $0.30.

This will keep Grass from correcting toward the 50-day EMA at $0.24. 

The ongoing conflict in the Middle East remains a major concern as it could negatively affect risk assets like Bitcoin and other cryptocurrencies.

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