Stratis Finally Breaks Out, How Long Will the Rally Continue? [Premium Analysis]

Many signs were pointing to this breakout, which we noted in our previous price analysis that predicted a breakout would soon transpire. In addition to the positive price movement, the Stratis platform has unveiled several upgrades over the past week, headlined by:

• .NET Core 3.0 Upgrade
• Improvements to SQL Wallet
• Enhancements to Block Explorer catering for Smart Contract data

Furthermore, the recent smart contracts challenge, which has hit its deadline for submissions, has garnered considerable attention in the tech industry. The challenge has 180 developers registered and has a prize pool of $18,000. Back to its price movement, cryptocurrency trader @CryptoNTez stated that the Stratis price is testing the 5200 satoshi resistance area. He suggested that if the price flips this area, he will look to enter the trade with a target of 6000 satoshis.

$STRAT
Currently testing ~5200sats resistance level with great volume
Calendar full of events for December end may act as catalyst..

Looking as entry for a R/S Flip of this level with target at ~6k+ sats (~20%)

UCTS Buy signal on the 1D /2D charts
RSI reaching overbought#STRAT pic.twitter.com/01fGlTBG9n

— Nico (@CryptoNTez) December 16, 2019

Will the price be successful in moving above resistance? If so, will it reach 6000 satoshis? If you want to know the answer to those questions, continue reading below.

Stratis Range Breakout

The Stratis price had been trading in a range between 3200 and 4500 satoshis since August. On December 15, the price broke out above this trading range. The breakout transpired with significant volume. The price has been increasing since, reaching the second resistance area between 5200-5300 satoshis. The rally has stalled a bit, and the price has created two long upper wicks. This resistance area coincides with the 200-day moving average (MA), increasing its significance.

Double Top

In the short-term, the price has created a double top near 5400 satoshis. The second top is characterized by several long upper wicks in the hourly time-frame, indicating strong selling pressure. Additionally, there is bearish divergence developing in both the RSI & the MACD. A price decrease below 4800 satoshis would confirm the double top and the possible downward movement. If the price breaks down below this minor support area, which we believe is likely, it should retest the breakout level at 4500 satoshis and validate it as support. This is a very common movement after breakouts. Afterward, the price could trade between the newly created range of 4500-5400 satoshis. To conclude, the Stratis price recently broke out from its long-term trading range. The breakout looks valid, but the price has reached resistance. A period of retracement looks likely, before consolidation and an eventual breakout.