Storj Faces Challenges After Impressive Rally
Price Surge and Liquidations
Decentralized cloud storage network Storj (STORJ) experienced a remarkable surge in price over the past five weeks, reaching a resistance level of $0.542 on Monday. However, maintaining its upward momentum has become a significant hurdle for the cryptocurrency.
This impressive rally resulted in approximately $20 million in liquidations, impacting both long and short positions. As a result, the total open interest has declined by 35% over the past month, currently standing at around $132 million.
Potential Correction Ahead
Despite the recent price surge, there is a bearish divergence when comparing the latest price action with the Relative Strength Index (RSI). This divergence indicates an impending correction for STORJ. Analysts predict a price spike to Monday’s swing high before this correction takes place.
Following this expected spike, there could be a drop to the $0.331 support level, resulting in a potential correction of up to 32%. This highlights the volatile nature of cryptocurrency markets and emphasizes the need for caution when trading such assets.
Conclusion
Storj’s journey has been filled with excitement and challenges. The recent surge in price brought hope to investors, but it also raised concerns about a potential correction. As we anticipate the future of STORJ, it is crucial to remember the unpredictable nature of the cryptocurrency market and approach it with careful consideration.
