- Storj price is anticipating a bounce from the lower trendline of an ascending parallel channel.
- A decisive close above $3.2 will confirm the start of a new uptrend and a potential 45% run-up to $4.65.
- A breakdown below $2.32 will invalidate the bullish thesis and kick start a bearish one.
The Storj price is consolidating inside an ascending parallel channel, indicating a bounce from the lower boundary of the pattern.
Storj price primed for reversal
The Storj price has created two lower highs and three higher lows since March 23. An ascending parallel channel can be drawn when the swing points are joined using trend lines.
If STORJ breaks down the lower trend line, a 30% crash could follow. However, the Storj price seems to be holding above this boundary. A spike in selling pressure leading to a bounce and a decisive close above the 78.6% Fibonacci retracement level at $3.2 will confirm the bullish thesis.
In such a scenario, STORJ will face a crucial supply barrier before it surges 45% toward the 127.2% Fibonacci extension level. The Momentum Reversal Indicator’s breakout line at $3.58 will be the obstacle the bulls need to clear.
Beyond this point, Storj has a high chance of surging to its intended target at $4.65. If bullish momentum persists beyond this level, another 9% pump will most likely push the cryptocurrency toward the 141.4% Fibonacci extension level at $5.07.
STORJ/USDT 4-hour chart
Investors need to be aware that a drop below the 61.8% Fibonacci retracement level at $2.68 will signal the start of a downtrend. Moreover, a decisive close below $2.32 will invalidate the bullish outlook and trigger a drop.
In such a case, Storj price is likely to slide 15% toward $1.97 or the 38.2% Fibonacci retracement level.
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