STORJ Price Breaks Out: Will It Confirm the Rally Towards $1?
Crypto News – STORJ, the cryptocurrency, recently broke through the significant horizontal resistance at $0.50, marking a notable development in its price action. The coin surged to a high of $0.64, a level not seen in the past 440 days.
While this breakout is promising, it’s important to note that STORJ has not yet confirmed this upward move with a weekly close above the $0.50 resistance. The question remains: will it manage to do so?
Breaking the Long-Term Resistance
Throughout the year, STORJ has been trading within a range of $0.25 to $0.50, with both the resistance and support levels repeatedly validated (indicated by red and green icons). In August, STORJ saw a strong bounce from the lower end of this range, characterized by a long lower wick, signaling increased buying pressure. This acted as a catalyst for the ongoing uptrend.
After an unsuccessful attempt to break out in October (marked by a black icon), STORJ finally succeeded this week by reaching $0.64, its highest point in over a year.
Analyzing the Relative Strength Index (RSI)
The Relative Strength Index (RSI) is a key momentum indicator used by traders to assess whether a market is overbought or oversold, helping them decide whether to buy or sell an asset. RSI readings above 50, accompanied by an upward trend, suggest that the bulls are in control, while readings below 50 indicate the opposite.
On the weekly chart, the RSI for STORJ is on the rise and currently stands above 50, both of which are positive signs. Additionally, the RSI displayed bullish divergence during the August low (illustrated by the green line), a pattern where an increase in momentum coincides with a price decrease.
STORJ Price Forecast: Is $1 Within Reach?
Technical analysts often turn to the Elliott Wave theory to identify recurring long-term price patterns and investor sentiment, aiding in predicting the direction of a trend.
A bullish outlook is supported by the daily Elliott Wave count, which suggests that STORJ is in the third wave of a five-wave upward movement.
The daily RSI further reinforces this bullish sentiment, as it remains above 50 and is trending upward. Notably, the RSI broke out from its bearish divergence trendline (indicated by the green line), indicating the completion of the correction phase.
Market Sentiment and Predictions
Market sentiment among cryptocurrency traders, as observed on platforms like X (formerly Twitter), is decidedly bullish.
Chill_Trader99 believes that a short squeeze is currently in progress, while Binance_Master predicts that STORJ’s price could reach $0.90.
If the first and third waves have similar lengths, STORJ could potentially reach a high of $0.70, representing a 12% increase from its current level. If wave three extends and is 1.61 times the length of wave one, the price might surge by 45%, targeting the next resistance level at $0.91.
However, it’s crucial to note that a close below the $0.50 horizontal area would invalidate the breakout. In such a scenario, STORJ could experience a 60% decline, potentially falling to the long-term support at $0.24.