Stargate Finance (STG) price is breaking above a key horizontal resistance level, creating a bullish formation on the monthly timeframe. There is a high probability that the price will increase sharply in the near future.
The monthly chart shows that STG price has been trading in a range of $0.38 to $1.20 since May 2022. The price managed to confirm its validity by testing the support and resistance of this range several times.
After forming a morning star pattern in November 2023, Stargate Finance price formed a bullish engulfing pattern in February 2024. Both are bullish formations, but it is possible to draw different conclusions.
The morning star pattern signals the end of a downtrend, while the bullish engulfing pattern indicates that the bullish side has completely taken over the market. In particular, these patterns become more evident when they occur on a monthly time frame.
The fact that trading volume has increased along with the price increase over the last four months is considered another bullish signal.
Therefore, Stargate Finance price may continue to rise towards the upper end of the range at $1.20. This figure represents an increase of 66.92% from the current price.
Yesterday, STG price broke above the key $0.71 resistance level that has been blocking its rise since May 2023. This breakout occurred with significant trading volume, confirming the legitimacy of the breakout.
The daily RSI (Relative Strength Index) broke above the downtrend line and remained above 50, continuing the uptrend. This shows bullish signals and supports the possibility of further increases.
Therefore, it is predicted that STG price may rise towards the nearest horizontal resistance, around $0.84, in the coming days.
The most likely outlook shows that the Stargate Finance price will continue to rise in the near future. The immediate target lies at $0.84, while the potential higher target is $1.20.
