Stargate Finance (STG) Price Bounces Off Key Support, Has A New Bull Run Started?
The price of Stargate Finance (STG) has bounced back from a significant horizontal support level. It may retest the previously broken parallel channel.
Bounce from important support
The price of Stargate Finance (STG) broke below an ascending parallel channel on May 7, indicating a continuation of the downward trend. The pattern targets $0.42, calculated by measuring the height of the pattern from the breakdown point.
However, the bulls managed to hold the crucial support level at $0.6, which has been providing support for STG since January 2023. It has also formed a double bottom pattern during this period.
Therefore, the price of STG may rise to the resistance level at $0.78, formed by the horizontal resistance and the support line of the parallel channel.
The daily RSI indicator supports a potential recovery as it generates a bullish divergence and is sloping upwards.
However, due to the previous breakdown of the parallel channel, the dominant trend remains bearish. Breaking below the support level at $0.6 would signal a continuation of the downward trend. Subsequently, the price of STG would decline towards the target of the channel at $0.42.
Short-term outlook
The 4-hour chart shows that the STG price has broken above a descending resistance line formed since the local high at $0.95.
This indicates a weakening selling pressure. Therefore, the price of STG has the potential to rise towards the next horizontal resistance at $0.69.
Conclusion
Technical indicators suggest a short-term recovery for STG. The nearest target is $0.69, with further upside potential towards $0.78.
However, breaking below the support level at $0.6 would confirm the continuation of the downward trend. Subsequently, the STG price would decline towards $0.42.
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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