Has the environment peaked?

STORJ's price was rejected at the October 1 high and has declined significantly since then.

Before the crash, STORJ was up 90 percent in September.

STORJ will fall after the rejection of the regional high

On September 14, STORJ broke out of the $0.32 horizontal resistance area. After a small increase, ten days later it returned to confirm the area as support (green icon). This is a common activity after a crash.

The increase was $0.51 higher on October 1. STORJ's price has almost dropped since then. A similar decline was seen in the crypto market.

The decline confirmed the $0.50 horizontal area as resistance. The movement since September suggests that STORJ price is now trading in a horizontal range between $0.32-$0.50.

Range moves are identified by a combination between the high and low range before moving out of it.

The daily RSI does not confirm the direction of the trend. RSI is a momentum indicator that traders use to assess whether the market is overbought or oversold and to stockpile or sell the asset.

A reading above 50 and an upward trend indicates that the bulls are still in advantage, while a reading below 50 indicates that the trend is weak. While the indicator is falling, it is still above 50. Mixed signals create an uncertain trend.

STORJ Price Forecast: EW Theory predicts a reversal

Technical analysts use Elliott Wave theory as a method to identify recurring long-term price patterns and investor psychology, which helps them determine the direction of a trend.

According to EW theory, STORJ has completed a five-wave increase that began on August 15 (green icon).

Two features define this STORJ price counter. First, wave five ended at wave four's 1.61 outer Fib retracement level. This is a common level for the upper part of the environment.

According to the theory of Fibonacci retracement levels, following a significant price change in one direction, the price is expected to partially return to the previous price level before continuing in the same direction.

This concept can also be used to identify the top of future upward movements.

Secondly, there was a big bearish divergence in the RSI between waves three and five. This is also a sign of depression trends. A bearish divergence occurs when a decrease in velocity is accompanied by an increase in price.

If STORJ's calculations are correct, the cryptocurrency will gradually descend to the horizontal support area of ​​$0.32, a 25% drop from its current price.

Despite this short-term STORJ price forecast, a move above $0.51 means that the local high has not yet been entered. If so, the altcoin could move to the next resistance at $0.64, a 50% increase from the current price.

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