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Stargate Finance (STG) Price Approaches Long-term Resistance, Is a Breakout Happening?

The price of Stargate Finance (STG) is currently trading just below a crucial resistance zone, where a breakout could trigger a strong upward movement.

Weekly Outlook

The Stargate Finance (STG) price has been on the rise since reaching a yearly low of $0.39 in mid-October 2023. This upward momentum brought the price to a significant resistance zone at $0.71, where it attempted four breakouts but was unsuccessful each time (depicted by the red hammers).

The STG price is currently making another breakout attempt after bouncing from the support zone at $0.5 two weeks ago (green arrow).

Notably, last week’s candle is a large bullish candle, closing right near the resistance zone, suggesting weakening selling pressure in this zone.

The weekly RSI has broken above the descending divergence line, surging above the 50 level, indicating the bulls have an advantage.

If a breakout occurs, the STG price could rise by 42.78% to the next resistance zone at $0.95.

STG/USDT weekly chart . Source: TradingView

Short-Term Breakout

The daily chart shows that STG has been trading within the range of $0.5 to $0.63 since November 5, 2023, except for a deviation created at the end of December (red ellipse). The range constraint indicates indecision between bulls and bears in determining the next trend.

However, this indecision has been resolved in favor of the bulls as STG has broken out and confirmed the range’s resistance as support today (green arrow).

The daily RSI is rising and is above 50, supporting the continuation of the uptrend.

A move equal to the height of the range would take the STG price to $0.77. This also helps the price break above the $0.71 resistance on the weekly timeframe.

STG/USDT daily chart . Source: TradingView

Conclusion

The most likely prospect suggests that the STG price will continue to rise in the near future. The nearest target is $0.77, with a higher target at $0.95.

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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