Stargate Finance (STG) Price Breaks Out of Short-term Range, Will a Strong Rally Follow?
The price of Stargate Finance (STG) has bounced back from the previous long-term resistance zone and is showing short-term bullish signals. It could see a recovery in the coming days.
The STG price had declined since it was rejected at the $0.71 resistance level in the week from August 7 to 14 (red arrow). This action caused the price to break below the support level at $0.52 and drop to the previous resistance zone at $0.44-$0.45 on September 11.
The price has recovered since then and is currently forming a morning star candlestick pattern (green ellipse). This is a bullish pattern, often occurring at the end of a downtrend. It is completed when this week’s candle closes above the previous week’s high at $0.47.
If successful, the STG price could retest the previous support zone at $0.52. Reclaiming this area might propel STG price towards a strong resistance zone at $0.71.
The 4-hour chart shows that the STG price has broken out of the range between $0.44-$0.47 today. This indicates that bulls have taken control of the short-term price action.
The next minor resistance level is found at $0.50, and higher towards $0.54.
As this range has persisted for over 18 days, the movement after the breakout could be quite strong.
Therefore, STG price could break above the $0.50 level and rise towards $0.54.
This would also enable STG to form a morning star pattern on the weekly timeframe.
The most likely scenario suggests that STG price will increase in the coming days. The nearest target is $0.50, with a potential rise to $0.54.
A breakout above $0.54 could lead to a significant surge towards $0.71.
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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