At the beginning of July, the Stratis (STRAT) price broke out from an almost yearlong resistance area. However, it could not sustain the rally and has fallen back into the previous range.
Until the price reclaims the breakout level, the price movement cannot be considered bullish.
Stratis Failed Breakout Leads To Deviation
In the period measuring from August 2019 to July 2020, the STRAT price faced resistance from the 6,000 satoshi area. However, at the beginning of July, STRAT briefly broke out above this level and reached a high of 8,050 sats on July 20.
However, the STRAT breakout left two long upper-wicks in its wake and the price fell back below the breakout level. This is a sign that the breakout was a deviation rather than a legitimate upward movement.
The MACD has become negative and a bearish cross has already transpired. Furthermore, the RSI has fallen below 50—all bearish signs.
At the time of publishing, STRAT was trading slightly above the minor support area at 4,550 satoshis.
End of the Correction?
Cryptocurrency trader @Mesawine1 tweeted a Stratis chart, stating that the price is done with its correction and will likely move upwards from here.
The daily time-frame reveals that it is possible that STRAT will move upwards from this level. The price has bounced at the 4,550 support area and is the process of reclaiming the 200-day moving average (MA). A daily close above this MA would go a long way in supporting the bullish scenario.
Furthermore, the bearish momentum in the MACD is losing steam and the RSI could soon move upwards.
An upward move could take the price to the previous breakdown level of 6,000 satoshis. Until the price is successful in clearing this level once more, the price movement cannot be considered bullish.
The short-term chart reveals a breakout from a descending resistance line after a deviation above the previous low at 4,800 satoshis.
As long as the price is trading above this area, it is expected to make a run at 6,000 satoshis. A decrease and close below this level could mean that new lows are coming.
To conclude, the STRAT price seems poised to move upwards after a considerable decrease over the past two weeks. However, until the price clears or gets rejected by the previous breakout level, we cannot determine whether this is a relief rally or an upward move that will lead to continuation.
The post Stratis Falls Inside Previous Range After Failed Breakout appeared first on BeInCrypto.
Source: Be In Crypto