While the long-term trend is decidedly bullish, the short-term STORJ indicators promise a pullback first and only then a resumption of the upward movement.
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STORJ broke through long-term resistance
-the token of the Storj Labs project, which positions itself as a “convenient, affordable and secure decentralized cloud storage. As the results of the technical analysis of the weekly chart show, the price of the coin has been decreasing since November 2021 along the descending resistance line. The result of the fall was a low of $0.21, reached in June 2023. STORJ rebounded sharply almost immediately thereafter and has been rising ever since.
Further, on June 18, the price made a bullish breakout of the descending resistance line. At that time the age of this line was 581 days. Although the price reached a new yearly high of $0.61, the STORJ is now in the process of forming a long upper wick (red icon). Moreover, there is a risk of falling below the $0.48 horizontal area.
<It is still unclear whether this area will play the role of resistance or whether STORJ will take this barrier and turn it into support.
Source: TradingView
The weekly RSI supports continued growth. Traders use RSI as a momentum indicator to assess whether the market is overbought or oversold and to determine whether it is worthwhile to accumulate or sell an asset.
Bulls have an advantage if RSI values are above 50 and the trend is upward, and vice versa. In this case the RSI is above 50 and rising, indicating a bullish trend.
And what’s more, the indicator is showing very strong bullish divergence signals (green line). Divergence at such a high timeframe is very rare and often precedes long-term bullish trend reversals, as was the case with STORJ.
The divergence at such a high timeframe is very rare and often precedes long-term bullish trend reversals, as was the case with STORJ.
STORJ forecast: pullback before continuation
While the weekly timeframe is bullish, the daily timeframe shows more mixed signs. On the one hand, on July 1 STORJ made a bullish breakdown of the descending resistance line. The conviction of the breakout was also supported by the RSI signals, which rose above 50 and is rising.
However, the price failed to close above the $0.48 horizontal area.. Instead it formed a very long upper wick (red sign), which is considered a sign of selling pressure.
In addition, the preceding bullish breakout can be considered an outlier, as the price could not support the rally above the $0.48 area.
Source: TradingView
So the STORJ long-term trend is decidedly bullish. However, the direction of the short-term trend will probably be determined by whether the price closes above or below the $0.48 horizontal area.
In the former case, we would expect an upward move to the next long-term resistance at $0.90. If it closes below $0.48, it could trigger a drop to the next closest support at $0.36.