Despite its recent "Rapid Riser" status, STORJ is experiencing a significant pullback. Here's what we're seeing:
Pullback: The 8.65% drop suggests profit-taking after the recent rally. This is normal and healthy in a broader uptrend.
Trend line: Watch the ascending trend line from the recent lows. It's currently around $0.58. A break below this could signal a short-term trend reversal.
Support levels:
Immediate support: $0.59
Critical support: $0.58 (trend line)
Strong support: $0.55 (previous resistance turned support)
Resistance levels:
Immediate resistance: $0.62
Key resistance: $0.65 (recent high)
Targets:
If support holds: Look for a rebound towards $0.65, then $0.70
If support breaks: Watch for a deeper correction to $0.55 or even $0.50
Volume: Pay attention to trading volume. High volume on a bounce would confirm buyer interest.
RSI: Currently cooling off from overbought levels, which could be healthy for continued upside.
For bulls: Consider entries near the trend line support if it holds. Set stops below $0.57.
For bears: A clear break below $0.58 could offer short opportunities, but be cautious of oversold bounces.
Remember, STORJ has shown strong momentum recently. This pullback could be a chance to enter for those who missed the initial rise.
