Why is GRAM price going up today as Telegram wallet adoption surges?

Gram (GRAM) price has risen 4.4% over the past 24 hours to $1.18 on November 12, supported by renewed interest in Telegram’s cryptocurrency ecosystem and bullish comments from its founder, Pavel Durov.

Summary

• GRAM price rose 4.4% over the past 24 hours to $1.18 after recovering from a November 9 low near $1.00 and briefly reaching $1.25.
• Telegram founder Pavel Durov predicted that GRAM could become one of the three largest cryptocurrencies as wallet activations reportedly surpassed 1 million within 48 hours.
• GRAM’s technical indicators show improving momentum, although the token remains below its 50 day exponential moving average near $1.27.
• Immediate resistance stands between $1.20 and $1.23, while $1.12 and $1.06 remain important support levels if the recovery loses momentum.

According to crypto.news data, GRAM recovered from a November 9 low near $1.00 and briefly reached $1.25 on November 11 before pulling back. The token has gained 2% over the past seven days, although it remains down 14% over the last month and 41.9% over the past year.

Trading activity has picked up alongside the recovery. GRAM’s daily trading volume rose more than 70% during the November 11 rally, according to CoinMarketCap, as the cryptocurrency outperformed a weaker market.

Durov’s bullish comments and Telegram wallet growth support GRAM

One of the main developments behind GRAM’s recent recovery has been Durov’s public endorsement of the cryptocurrency and his prediction that it could eventually become one of the world’s three largest digital assets.

In a November 10 Telegram post, the founder described GRAM as “ridiculously undervalued” and argued that its integration with a major social platform gave it an advantage over other cryptocurrencies.

He pointed to the token’s gains while much of the cryptocurrency market was trading lower and said GRAM deserved a place among the top three cryptocurrencies by market capitalization.

His comments followed a rapid rise in wallet registrations across Telegram, which has been expanding access to its built-in cryptocurrency services.

On November 11, Durov said more than one million self-custodial GRAM wallets had been activated within 48 hours, up from the 700,000 registrations he had highlighted two days earlier.

As crypto.news previously reported, the November 9 figures included 329,952 new wallets created that day alone.

Durov explained that a wallet activates automatically when a Telegram user receives GRAM, allowing people to start receiving cryptocurrency without manually setting up a wallet beforehand.

The recent growth follows Telegram’s expansion of its Money wallet in October, which allows users to store GRAM, transfer tokens to other accounts, and purchase digital gifts and collectible usernames.

GRAM had gained 9% to $1.56 during that earlier rollout, although the token subsequently gave back those gains.

Telegram began its phased wallet rollout on August 31, initially giving selected accounts access before expanding availability.

The wallet is part of Telegram’s closer involvement with The Open Network, whose native cryptocurrency was renamed from Toncoin to Gram in June. The rebranding did not require holders to exchange their existing tokens or migrate their wallets.

What are technical indicators saying about GRAM price?

GRAM’s daily technical indicators currently present a mixed picture, with improving short-term momentum but several resistance levels still standing above the market price.

The Relative Strength Index stands near 47.8, indicating neutral momentum. The reading remains below the 50 level, although it has moved away from the weaker conditions seen during the recent decline.

Meanwhile, the Moving Average Convergence Divergence indicator shows its MACD line at approximately -0.0559, above the signal line at -0.0659. The positive histogram suggests that bearish momentum has weakened as the price recovers.

GRAM is trading near its 20-day exponential moving average of $1.18 and above its 10-day EMA at $1.14. However, the token remains below its 50-day EMA at $1.27, where sellers could present another challenge.

The Average Directional Index stands at 36.66, indicating a relatively strong underlying trend, while its directional signal remains bearish.

Immediate resistance sits around $1.20 to $1.23. A daily close above $1.23 could bring $1.27 into focus, followed by the next resistance level near $1.37.

On the downside, $1.12 remains the nearest support, followed by the 200-day EMA around $1.06 and the psychological $1.00 level.

Bollinger Bands place the middle band near $1.17, with the upper and lower boundaries around $1.30 and $1.03, respectively. The price remains close to the middle band after retreating from its November 11 high.