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Stargate Finance (STG) Price Breaks Out of Important Resistance, Is a Strong Rally Happening?

The price of Stargate Finance (STG) has broken above a crucial horizontal resistance level and continues to create a bullish pattern on the monthly timeframe. It is expected to increase sharply in the near future.

Monthly Outlook

The monthly chart reveals that the price of Stargate Finance (STG) has been trading within the range of $0.38 to $1.20 since May 2022. The price has tested the support and resistance of this range several times, confirming its validity.

After forming a morning star pattern in November 2023 (red ellipse), the STG price created a bullish engulfing pattern in February 2024 (green ellipse). Both are bullish patterns, but they carry different implications.

While the morning star pattern signals the end of a downtrend, the bullish engulfing pattern indicates that the bullish side has taken full control of the market. These patterns are more significant when formed on the monthly timeframe.

Notably, trading volume has surged as the price increased over the past four months, another bullish signal.

Therefore, the STG price may continue to rise towards the upper limit of the range at $1.20. This figure corresponds to a 66.92% increase from the current price.

STG/USDT monthly chart. Source: TradingView

Crucial Horizontal Resistance Breakout

Yesterday, the STG price broke above the crucial resistance level at $0.71, which has held back its rise since May 2023. The breakout occurred with substantial trading volume, confirming the legitimacy of the breakout.

The daily RSI (Relative Strength Index) has broken above the bearish divergence line, staying above 50 and trending upward. They are all bullish signals, supporting the likelihood of further increases.

Therefore, the STG price may rise towards the nearest horizontal resistance at $0.84 in the coming days.

STG/USDT daily chart. Source: TradingView

Conclusion

The most probable outlook indicates that the STG price will continue to rise in the near future. The immediate target is $0.84, with a potential higher target at $1.20.

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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