Stargate Finance (STG) Has Increased Thanks To The Rumor That LayerZero Will Launch Its Token In May
The price of Stargate Finance (STG) is rebounding from an important support level. If successful, it could retest the resistance level at $0.95.
Stargate Finance (STG) is a leading cross-chain bridge built on the LayerZero blockchain. With rumors of LayerZero launching its token in May, this could attract money into its ecosystem projects.
Recently, the OKX exchange has also instructed users to hunt for airdrops from the project.
20-week moving average (MA)
After rising over 300% in the early year to reach a high of $1.38, the STG price has dropped sharply. However, the bull camp stepped in as the price fell to the 20-week MA (blue arrow) during the week of March 6-13. This is a positive signal as the 20-week MA is often used to determine long-term trends. The rebound from it shows that the trend is still up.
The price has since recovered and retested the resistance level at $0.95. Although it was rejected and fell sharply, the STG price is currently in the process of confirming the 20-week MA as support once again. If successful, it could increase to the resistance level at $0.95.
Weekly RSI indicator supports the possibility of a rebound as it remains above the 50 level.
Ascending parallel channel
STG price has been trading within a rising parallel channel since March 11. The price has tested both the channel’s resistance and support lines multiple times.
After bouncing from the channel’s support line yesterday, STG completed a bullish Fakey pattern (green ellipse). This is a pattern that often appears at the beginning of an uptrend. Therefore, the STG price is likely to increase to the channel’s midline at $0.82 in the short term. Breaking through this level will help the price retest the channel’s resistance line at $0.95.
Conclusion
The most probable prospect shows that the STG price will increase at least to $0.82 and higher to $0.95.
This view will be invalidated if the price breaks down below the channel’s support line at $0.69.
Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information. Not Financial Advice.
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