Stargate Finance (STG) Price Breaks Below Important Support, Where Is A Potential Buy Point?
The price of Stargate Finance (STG) has broken below a important support level. A sell-off is possible in the near term.
Important Support
The price of Stargate Finance (STG) has been declining since reaching its yearly high at $1.38 on February 13, 2023. During this period, the price has bounced off the support level at $0.6 several times, with the most recent bounce occurring on May 15 (green arrow).
That bounce has helped the price of STG form a morning star pattern (green ellipse). This is a bullish pattern that often leads to a trend reversal to the upside.
However, the price has broken below the $0.6 support level this week, invalidating the bullish pattern. This is an extremely bearish development as it traps the bulls and often leads to a subsequent sell-off.
If so, the price of STG may decline towards the next horizontal support level at $0.44 and potentially even lower to $0.35.
The RSI indicator supports this possibility as it has dropped below the 50 level and is sloping downwards.
Daily Outlook
The daily chart shows that the price of STG has continued its downward trend since breaking below an ascending parallel channel.
This pattern has a target of $0.44, calculated by measuring the height of the pattern and projecting it from the breakdown point.
Since this target coincides with the mentioned horizontal support level, it is likely to act as the bottom of this downward move.
Conclusion
The most probable outlook suggests that the price of STG will continue to decline in the near future. The nearest target is $0.44 and potentially lower to $0.35.
This view would be invalidated if the price sharply rallies from the current level and reclaims the $0.6 support level. However, this seems unlikely at the moment.
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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