STORJ Price Stalls After 90% September Increase – What Lies Ahead?

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%.

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.

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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.

STORJ/USDT Daily Chart. Source: TradingView

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.

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.

STORJ Price Prediction: EW Theory Predicts Retracement

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).

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Two characteristics define this STORJ price count. Firstly, wave five ended at wave four’s 1.61 external Fib retracement level. This is a common level for a local top.

According to the Fibonacci retracement levels theory, following a significant price change in one direction, the price is expected to partially return to a previous price level before continuing in the same direction.

This theory can also be used to identify the peak of future upward movements.

Secondly, there was a considerable bearish divergence in the RSI between waves three and five. This is also a sign of bearish trends. A bearish divergence occurs when a momentum decrease accompanies a price increase.

If the STORJ count is correct, the cryptocurrency will gradually fall towards the $0.32 horizontal support area, a drop of 25% measuring from the current price.

STORJ/USDT 6-Hour Chart. Source: TradingView

Despite this bearish short-term STORJ price prediction, a movement above the $0.51 high will mean that the local top is not in yet. In that case, the altcoin can move to the next resistance at $0.64, an increase of 50% from the current price.

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