Crypto News– The STORJ price was rejected by its range high on October 1 and has fallen significantly since. Before the drop, STORJ had experienced a very bullish September, increasing by 90%.
4 October STORJ Price Experiences a Stall Following a 90% Increase in September
STORJ Falls After Rejection From Range High On September 14, STORJ broke out from the $0.32 horizontal resistance area. After a brief increase, it returned to validate the area as support ten days later (green icon). This is a common movement after breakouts. The increase culminated with a high of $0.51 on October 1. The STORJ price fell almost immediately afterward. A similar decrease has been seen throughout the crypto market.
The decrease validated the $0.50 horizontal area as resistance. The movement since September suggests that the STORJ price is now trading in a horizontal range between $0.32-$0.50.
Range movements are characterized by consolidation between the range high and low before a movement outside of it. The daily RSI does not confirm the trend’s direction. The RSI is a momentum indicator traders use to evaluate whether a market is overbought or oversold and to determine whether to accumulate or sell an asset.
STORJ Price Forecast: Elliott Wave Theory Anticipates a Pullback
Readings above 50 and an upward trend suggest that bulls still have an advantage, while readings below 50 indicate the trend is bearish. While the indicator is falling, it is still above 50. The mixed signs make for an undetermined trend. Technical analysts employ the Elliott Wave theory as a means to identify recurring long-term price patterns and investor psychology, which helps them determine the direction of a trend.
According to EW theory, STORJ has completed a five-wave increase, which began on August 15 (green icon).
There are two key elements to consider in analyzing the STORJ price movement. First, wave five concluded precisely at the 1.61 external Fibonacci retracement level of wave four. This level is commonly associated with a local peak.
According to the Fibonacci retracement theory, after a significant price move in one direction, it’s expected that the price will partially retrace to a previous level before resuming its prior direction. This concept can also help predict the peak of future upward movements.
Secondly, a noticeable bearish divergence in the RSI was observed between waves three and five. This is a telltale sign of a bearish trend. A bearish divergence occurs when a decrease in momentum accompanies a rise in price.
If this analysis of STORJ holds true, the cryptocurrency is likely to gradually decline towards the $0.32 horizontal support zone, representing a 25% drop from its current price.
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