Stargate Finance (STG) Price Poised for a 30% Surge Following Breakthrough of Key Resistance Level
The price of Stargate Finance (STG) has broken above a crucial resistance level and confirmed it as support. This action could lead to continued upward movement in the near future.
Regaining a Crucial Price Zone
The price of Stargate Finance (STG) has surged since forming a morning star pattern (green ellipse) at the long-term support zone of $0.4. This is a bullish reversal pattern commonly seen at the end of a downtrend.
Indeed, the STG price has increased significantly afterward and broke above the crucial resistance zone at $0.54 during the week of November 6 to 12. In the same week, the price also confirmed the $0.54 level as support (green arrow).
This indicates that the previous downtrend has concluded, and a new uptrend may unfold.
The weekly RSI (Relative Strength Index) has broken above the descending resistance line and moved up to the 50 level, supporting the continuation of the upward trend.
Therefore, the STG price could potentially continue rising to the resistance zone at $0.71, which is over 30% higher than the current price.
Daily Outlook
The daily chart also presents some optimistic signals. The STG price successfully flipped the previous peak at $0.51 into support on November 9 and November 14 (2 green arrows).
This is a positive development often leading to the continuation of an uptrend.
The daily RSI supports this possibility by creating a hidden bullish divergence and staying above 50.
However, yesterday’s bearish daily candle (red arrow) wiped out all the gains from the preceding bullish candle, indicating persistent selling pressure at higher levels.
Therefore, the STG price might retest the previous peak at $0.51 before resuming its upward trajectory.
Conclusion
The most likely scenario suggests that the price of Stargate Finance (STG) will continue to rise towards the next long-term resistance zone at $0.71.
However, it might revisit the previous peak at $0.51 once more before continuing the uptrend.
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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