The STORJ price is trading inside a long-term bullish pattern, a breakout from which could significant accelerate the rate of increase.

The weekly price action and RSI both support the possibility of a breakout which could lead to a 60% price increase.

STORJ Price Creates Triple Bottom After Failed Breakdown

The STORJ price has followed a descending support line since the beginning of the year. The line has been validated three times, most recently on August 17 (green icon). This validation created a long lower wick (green icon), considered a sign of buying pressure. The STORJ price has increased since.

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The price now trades slightly below a descending resistance line which has also been in place since the beginning of the year. When combined with the support line, it creates a descending wedge, considered a bullish pattern. Therefore, a breakout from the wedge is the most likely future price outlook.

In case of a breakout, a 60% increase to the next resistance at $0.42 will be likely. However, a breakdown from the wedge can cause a 40% drop to the $0.15 horizontal support area.

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STORJ/USDT Weekly Chart. Source: TradingView

The weekly RSI is leaning bullish. By using the RSI as a momentum indicator, traders can determine whether a market is overbought or oversold and decide whether to accumulate or sell an asset. If the RSI reading is above 50 and the trend is upward, bulls have an advantage, but if the reading is below 50, the opposite is true.

While the indicator is still below 50, it is moving upwards. More importantly, it has generated bullish divergence during the most recent bounce (green line). A bullish divergence occurs when a momentum increase accompanies a price decrease. It often precedes upward movements. The signal gains more legitimacy since it is transpiring inside a bullish pattern.

Is Bounce Beginning of STORJ Price Rally?

The short-term six-hour timeframe shows that the STORJ price began a significant upward movement today. However, while the price reached a high of $0.28, it failed to sustain the increase.

Rather, it created a long upper wick (red icon), considered a sign of selling pressure.

Furthermore, the wick validated the resistance line of an ascending parallel channel. Since these channels usually contain corrective movements, a breakout from the channel is required to confirm that a bullish trend reversal has begun.

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However, similarly to the weekly timeframe, the six-hour RSI also gives a bullish forecast. The indicator has generated bullish divergence and has moved above 50, both of these are considered signs of a bullish trend and support the bullish readings from the weekly timeframe.

As a result, a breakout from the short-term channel and the long-term wedge is the most likely STORJ price prediction.

STORJ/USDT Six-Hour Chart. Source: TradingView

Despite this bullish STORJ price prediction, a breakdown from the short-term channel will likely cause a breakdown from the long-term wedge. In that case, the price can fall by 40% and reach the all-time low support at $0.15.

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.

The post STORJ Price Up 15%: Can It Maintain the Momentum? appeared first on Crypto News Australia.

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Filed under: Bitcoin - @ September 8, 2023 3:23 pm