Storj price on Sunday spiked to set a new 7-month high of $2.9000.
However, profit-takers swooped on Monday pushing the price down to $1.8643.
Storj coin now has a fully diluted market cap of $788 million.
On Monday, the STORJ:USD price pulled back nearly 3% from Sunday’s close as profit-takers swooped in cash out on the weekend rally. The price of the open-source cloud storage platform’s native coin spiked to set a new 7-month high of about $2.9000 before easing later to close at about $2.0292.
Storj is a decentralised network of nodes that hosts and securely stores user data through advanced encryption. Storj was launched in late 2018 as a peer-to-peer encrypted cloud storage platform.
Is the pullback an opportunity to buy?
Storj’s Sunday spike was a reaction to the general market movement after the Office of the Comptroller of the Currency issued Anchorage with a first federal charter for a crypto bank. The quick pullback suggests there is nothing fundamentally specific to Storj that helped drive its price higher.
Therefore, the Storj:USD price could continue to pull back in the coming days unless a significant catalyst emerges. The Storj price has been relatively choppy in recent trading sessions, albeit in a gently ascending channel formation.
Therefore, investors could target potential pullback profits at about $1.5971 or lower to $1.2684. On the other hand, if a new catalyst emerges, sparking a rebound, Storj could find solid resistance at about $2.0574, or higher at $2.3368.
In summary, with Storj still trading in overbought conditions after the recent spike, a downward movement looks more likely in the coming days.