On November 8, the price of GRASS, the native token of the Solana-based Decentralized Physical Infrastructure Networks (DePIN) project, climbed to an all-time high of $3.95. However, with waning bullish sentiment and a spike in profit-taking activity, the token’s price has since plunged by 27%.

This analysis explores reasons why GRASS’ crypto price could fall even further from this level. 

GRASS Traders Dump Holdings

DePIN token GRASS trades at $2.78 as of this writing, noting a 13% price decline over the past 24 hours. BeInCrypto’s assessment of the GRASS/USD 4-hour chart confirms the uptick in selling pressure.

For example, readings from the altcoin’s Relative Strength Index (RSI) show that market participants have sold their GRASS tokens more than they have bought new ones over the past few days. At press time, this indicator is in a downward trend at 44.80. 

The RSI indicator measures an asset’s overbought and oversold market conditions. It ranges between 0 and 100, with values above 70 suggesting that the asset is overbought and due for a correction. On the other hand, values below 30 indicate that the asset is oversold and may witness a rebound. 

GRASS’ RSI reading of 44.80 suggests that selling pressure is gaining momentum as token holders have begun to sell for profit. 

Furthermore, the token’s negative Chaikin Money Flow (CMF) confirms this bearish outlook. As of this writing, this indicator, which measures money flows into and out of an asset, is below zero at -0.04.

A CMF below zero suggests sellers are more dominant than buyers, often signaling bearish momentum. The further below zero, t

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Author: Abiodun Oladokun