Stratis has been trading in a range since August 2019. This movement has the characteristics of the consolidation phase, after which a new bullish market cycle is expected to begin.The trading range of this consolidation has a magnitude of 40%, and the price has tested both the resistance and support areas several times. At the time of writing, it was moving upward towards the resistance area. Full-time trader @CryptoMichNL noted that the Stratis price has been holding above a strong support area and has shown signs of moving upward.
Additionally, he suggested that a breakout above the 4500 satoshi resistance area would probably accelerate the rate of increase. Let’s take a closer look at the price and see how likely this is to happen.
$STRAT #STRATIS— Michaël van de Poppe (@CryptoMichNL) December 12, 2019
This one is nicely holding the green zone for support here.
However, the real party kicks off when the 4500 area is broken upwards. Then it breaks the range. pic.twitter.com/MwOjV2UPJN
Long-Term BottomFirst, the Stratis price reached the long-term support area at 3000 satoshis in August 2019. This was almost an all-time low, coinciding with the lows reached in 2016, which was the bottom before the 2017 upward move. Additionally, the RSI reached an all-time low value of 23 during this time and created bullish divergence. The weekly RSI has never been this low and the only other time it has created bullish divergence (October 2018) an upward move followed. This suggests that this is a very suitable level to make a low and initiate a reversal, as we have suggested in our previous article. Looking closer at the movement, we can see the trading range, consisting of two support and one resistance area. The main support area is at 3250 satoshis, where the double bottom was created. This is followed by the minor support area at 3850 satoshis. The minor support coincides with the 100-day moving average (MA). The price has flipped it as support. The price fell inside it twice and began an upward move each time. The resistance area is found at 4500 satoshis and the price has not reached it since November 30.
Short-Term BreakoutOn December 11, the Stratis price broke out above the descending resistance line that had been in place since the beginning of December. The breakout transpired with significant volume, increasing the validity of the movement. Afterward, the price returned to validate the descending resistance line, a common movement after breakouts. To conclude, the Stratis price is likely consolidating before beginning a new market cycle. A decisive breakout above 4500 satoshis is expected, confirming that the new cycle has begun.
Images are courtesy of Twitter, TradingView.
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.