Storj (STORJ) Technical Analysis: Mysterious Surge despite Today’s Market Crash
Nothing in this article is to be construed as investment advice. Neither the author nor the publication assumes any responsibility or liability for any investments, profits, or losses incurred as a result of this information.
The crypto market has shed over $15 billion in the last 24 hours, leaving a vast majority of tokens deep in the red as Bitcoin struggles to regain composure. But amid this devastation, decentralized cloud storage project Storj has managed to leap by 30% against BTC without the community being aware of it.
According to figures on Coinmarketcap, 24-hour trading volume has exploded from $2,112,340 to $16,460,400, with 46% of all Storj trades executed on the Upbit exchange against the Korean won. It is unclear at this time why sudden bullish support has rushed in from Southeast Asia. The Storj Telegram group has yet to comment on the recent movement, and people are already speculating that insider trading may be afoot.
Whatever the reason, let’s take a look at the STORJ/BTC chart and see where this is going.
On the 4-hour STORJ/BTC chart, we can see the asset was finally able to find the bottom last month at 3,415 Sats after a long bearish decline starting in May wiped out over 75% of its value.
After collecting around the 4,100 Sats support over the last two weeks, bulls suddenly surged the asset through the first resistance at 5,100 Sats and tested the second main resistance at 6,100 Sats in the opening run.
STORJ has now corrected down 10% from its peak price point, but there are still promising signs this may not be just a pump and dump.
- On the 2-hour MACD indicator, we can see the 12MA has risen far above the 26MA and is showing no signs of diverging. This suggests that the bullish momentum is still building.
- The RSI was well into the overbought region earlier, and then started to re-enter the index channel but is now beginning to push back into the overbought region. This supports the MACD signal and shows that bulls are still driving this asset.
- On the Ichimoku indicator, candles have passed through the resisting kumo and are now high above it. There is also a strong T/K crossover supporting the continuation.
- The Chaikin Money Flow indicator was showing a drop in buying pressure in the previous 2-hour candle but has now flickered back upward as short-term momentum picks up again.
While these signs foreshadow a likely bullish continuation, we should note that long wicks above the recent candles are a strong indication bears are working hard to keep the price from retesting the 6,100 Sats mark. If the current sentiment starts to weaken, we could see a sharp reversal as bears take back Storj.
Storj (STORJ) price targets
All price targets are set from the asset’s current value of 5,634 Sats (at the time of writing).
Price Target 1: Retest 6,100 Sats (8.27% ROI)
Price Target 2: Psychological resistance at 7,000 Sats (24.25% ROI)
Price Target 3: Next main resistance at 7,400 Sats (31.35% ROI)
Source: Read Full Article