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Why is Storj Pumping?
Storj (STORJ), a cryptocurrency underpinning a decentralized cloud storage platform, has seen a substantial price increase of over 50%, which appears to be driven by a combination of technical factors and market dynamics:
STORJ has broken out from a long-term resistance level at $0.50, after several unsuccessful attempts. This breakout is considered bullish and has been accompanied by a bullish divergence on the weekly Relative Strength Index (RSI), a momentum indicator that suggests buying pressure when above 50.
Elliott Wave Theory
Technical analysts applying the Elliott Wave theory suggest that STORJ is in the third wave of a five-wave upward movement, which is generally considered the strongest and often the longest wave. This theory is supported by the daily RSI, which is above 50 and trending upwards, indicating a bullish momentum for the cryptocurrency
There is a bullish sentiment among cryptocurrency traders, with some predicting that the price of STORJ could reach as high as $0.90. This optimism is partially based on the pattern that if the first and third waves are of equal length, STORJ could rise to $0.70, which would be a 12% increase from its current price. If the third wave extends, as some Elliott Wave theorists suggest, the price could increase by 45% to reach $0.91
Trading Volume Surge
Concurrently, there has been a significant increase in trading volume, particularly on South Korea’s largest cryptocurrency exchange, Upbit, which contributed 57% of STORJ’s spot trading volume. This surge in trading volume could be indicative of heightened investor interest and participation in the market
While these factors suggest a bullish outlook, it’s important to note that the crypto market is highly volatile, and a weekly close below the $0.50 resistance-turned-support level could invalidate the bullish scenario and potentially lead to a significant price drop.
What is Storj (STORJ)?
Storj (pronounced "storage") is a decentralized cloud storage platform that allows users to store data securely and privately across a distributed network of computers. It operates on blockchain technology and utilizes the STORJ token as a means of payment within the network.
Users can rent out their unused hard drive space and bandwidth to store and protect data for others, earning STORJ tokens in return. This approach aims to make cloud storage more secure, private, and less prone to failure than traditional, centralized cloud storage solutions.
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