Storj price aims for new all-time highs as supply on exchanges collapses
|- The number of STORJ coins inside exchanges has significantly decreased in the past two weeks.
- The digital asset had a 500% rally recently and continues to gain traction.
- However, in the short term, STORJ is at risk of a potential correction due to overextension.
The STORJ price had a massive 500% rally in March and has been trading sideways for the past week, forming a bull flag on the daily chart. Despite the price spike, the number of STORJ coins inside exchanges has significantly decreased.
STORJ price on verge of massive breakout
The digital asset has established a bull flag on the daily chart, which could be close to a breakout. Using the height of the pole as a reference, we can determine that the next leg up will take STORJ up to $4.8 in the long term. However, before that, bulls will target $3.83 first and then $4.
STORJ/USD daily chart
Bulls have the upper hand because the number of STORJ coins inside exchanges has notably dropped from 20% of the circulating supply on March 23 to only 13% currently. This massive fall indicates that holders are buying and holding and are not interested in selling to take profits.
STORJ Supply on Exchanges
However, the In/Out of the Money Around Price (IOMAP) chart indicates that STORJ faces strong resistance above $2.85 as many coins were bought beyond that level.
STORJ IOMAP chart
Losing the critical support trend line at $2.7 on the daily chart will invalidate the bull flag and can quickly drive the STORJ price down to $2.43 as this is the next key support level indicated by the IOMAP model.
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