STORJ rose in price by 55% in one day and tested the maximum level in the last 440 days. Let's figure out whether the token can grow to parity with the dollar
This week the price of STORJ broke through the horizontal resistance area of $0.50 and tested $0.71. This is the highest rate in the last 440 days. For a bullish breakout to be confirmed, the coin must end the week above this level.
STORJ broke through long-term resistance
Since the beginning of the year, the token has been trading in a range limited by the levels of $0.25 and $0.50. During this time, the price repeatedly tested resistance and support levels (red and green icons).
STORJ recently bounced off the lower end of the range, forming a very long lower wick, which is considered a sign of growing buying pressure. This movement served as a catalyst for further growth.
After another failed breakout attempt in October (black icon), the price finally made a breakout and reached a high of $0.71. This is the highest price in the last 440 days.
STORJ/USDT, weekly chart. Source: TradingView
Relative Strength Index (RSI) is a momentum indicator used by traders to assess whether a market is overbought or oversold, and to determine whether an asset is worth accumulating or selling.. A reading above 50 and an uptrend indicate that the bulls have the upper hand. If the indicator value is below 50, it means that the initiative has passed to the bears.
The weekly RSI is rising and is above 50, which is considered a positive signal. In addition, the indicator formed a bullish divergence against the background of the August low (green line). Bullish divergence occurs when an increase in the RSI is accompanied by a decrease in price.
STORJ price forecast: will the token rise to parity with the dollar?
Wave analysis of the daily chart shows that STORJ is in the third wave of a five-wave upward movement.
Daily RSI supports bullish outlook for altcoin. The indicator is above 50 and growing, which is a sign of a bullish trend. In addition, the RSI bounced off the trend line (green line), indicating the completion of the correction.
In July, the STORJ token staged a 70% rally, but something went wrong.
Cryptanalysts at X (formerly Twitter) are optimistic.
Chill_Trader99 believes that a short squeeze is currently underway, and Binance_Master believes that the STORJ price will reach $0.90 soon.
If the first and third waves are of the same length, then STORJ will reach a high of $0.70, which is 12% higher than the current price. If the third wave extends and is 1.61 times longer than the first, then the price could rise by 45% and reach the next resistance at $0.91.
STORJ/USDT, daily chart. Source: TradingView
Despite this bullish outlook, a close below the horizontal area of $0.50 will invalidate the forecast. In this case, the price of STORJ could fall by 60% to the long-term support at $0.24.