Stargate Finance (STG) Price Flips Previous Support As Resistance, What Next?
The price of Stargate Finance (STG) has been rejected by a horizontal resistance. It may revisit the important support zone once again.
Daily Outlook
The price of Stargate Finance (STG) broke down below an ascending channel on May 7, signaling the continuation of the previous downtrend. This pattern has a target of $0.42, calculated by measuring the height of the pattern from the breakdown point.
Although the bulls managed to hold the significant support zone at $0.6 and initiate a recovery, the trend is still considered bearish until the price reclaims this ascending channel. Indeed, the recovery was halted by the previous support zone at $0.71.
The RSI indicator has dropped back below 50, showing that the bears are making a comeback.
Therefore, the price of STG could decline back to the important support zone at $0.6 once again. Breaking below this level would take the price to the target of the pattern at $0.42.
Bullish Pattern
The weekly chart provides a more bullish outlook as the price of STG has formed a morning star pattern (green arrow) at the support zone of $0.6. This is a bullish pattern, which usually leads to a trend reversal to the upside.
However, the RSI indicator does not support this possibility as it got rejected at the 50 level and is trending lower.
To confirm a reversal in the trend, the RSI indicator needs to reclaim the 50 level and the price of STG needs to surpass the high of the morning star pattern at $0.71.
Conclusion
Due to conflicting signals from the daily and weekly timeframes, the price of STG is likely to trade within the range of $0.6 to $0.71 in the near future. How the price breaks out of this range will determine the next trend.
At the present time, a drop to the support of the range is likely to happen first.
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.
Read more:
- Solana (SOL) Price Is Ready To Go Higher, This Is A Potential Target
- How LSDfi Platforms Are Revamping The DeFi Landscape