Stratis Price Analysis: STRAT Meets Support Trading Below $1.50 — Can the Bulls Continue to Hold the Market Above $1?

Stratis has seen a 6.46% price increase over the past 24 hours of trading. The cryptocurrency currently is exchanging hands at $1.42, after suffering a small price decline of 3.84% over the past 7 trading days.

Stratis has launched its ICO in June 2016, and was founded by Chris Trew. It is described as a Blockchain-as-a-Service (BaaS) platform which allows corporations and businesses to develop their own custom blockchains.

The Stratis team has designed a platform that will allow enterprise businesses to easily create their own blockchain in a few clicks. This will allow the enterprise to focus on their own practices without having to worry about maintaining their own blockchain.

The platform allows for businesses to create a private blockchain that is unique to that business. The blockchain runs as a private side-chain on the main Stratis blockchain and therefore Stratis can continue to scale as all transactions are done off of the main chain.

The standout feature for the Stratis project, relative to its competitors such as Ark, is that it can create specific blockchain applications written in the well0known C# codebase. This allows developers who have years of experiencing in C# to come and develop applications on the Stratis blockchain.

Stratis is currently ranked 50thin terms of overall market cap across the entire industry. It has a total market cap value of $140 million after suffering a 51% price drop over the past 30 trading days.

Let us continue to analyze price action for Stratis over the long term.

Stratis Price Analysis

STRAT/USD – LONG TERM – DAILY CHART

Analyzing price action from the long-term perspective above, we can see that toward the end of 2017, Stratis had experienced a significant bullish run. This occurred when the market started from a low of $2.26 on November 2, 2017 and extended to an all-time high of $26.94 on January ,8 2018. This was a price increase totaling over 1,000% from low to high.

After placing the ATH, we can see price action began to roll over and decline. It had originally found support at the .618 Fibonacci Retracement priced at $10.62 during January. This Fibonacci Retracement is measured from the entire bullish run outlined above.

Price action continued to fall throughout February until finding support at the .886 Fibonacci Retracement level priced at $3.53 in March 2018. We can see that this price level provided significant support as the market rebounded from this level to begin a small bullish run throughout April.

We can see that, during June 2018, price action fell below the .886 Fibonacci Retracement support. It continued to fall throughout July until finding support at a 1.618 Fibonacci Extension level priced at $1.20 in August 2018.

Let us continue to analyze price action a little closer over the short term to highlight any potential support and resistance zones.

STRAT/USD – SHORT TERM – DAILY CHART

Analyzing price action from a shorter time horizon, we can see that throughout June and July 2018, the market was supported by a downside 1.414 Fibonacci Extension level (drawn in pink) priced at $2.14. However, as the cryptocurrency bloodbath started in August 2018 across the entire industry, price action fell below this support to find support at the downside 1.618 Fibonacci Extension level (drawn in pink) priced at $1.20.

We can also notice that on August 14, 2018, price action dipped below the support at $1.20 to find further support at a short-term downside 1.414 Fibonacci Extension level (drawn in blue) priced at $1.06. The market is currently trading at resistance marked by the short-term 1.272 Fibonacci Extension level (drawn in blue) priced at $1.43.

If the bulls can push the market above this resistance level, we expect immediate resistance to be located at the previous downside 1.414 Fibonacci Extension level priced at $2.14. Further resistance is then expected at the downside 1.272 Fibonacci Extension level priced at $2.80.

This area of resistance will be significantly bolstered by the 100-day moving average which is currently hovering within the same price level. Lastly, if the market can continue higher, we expect further resistance at the previous long-term .886 Fibonacci Retracement level priced at $3.53.

Alternatively, if the bears continue with their recent pressure, we expect immediate support in the market to be located at the short-term downside 1.414 Fibonacci Extension level (drawn in blue) priced at $1.06. Further support below the $1 handle can be located at the downside 1.618 Fibonacci Extension level priced at $0.52.

The technical indicators within the market are currently favoring the bears at this moment in time. The RSI is trading below the 50 handle after rising up out of extreme oversold conditions over the past few weeks. If the RSI can sustain a break above the 50 handle, this would indicate that the bulls are starting to regain momentum within the market.

Let us continue to quickly analyze price action relative to BTC over the short term and highlight and potential support and resistance levels.

STRAT/BTC – SHORT TERM – DAILY CHART

Analyzing the market from the short-term perspective above, we can see that STRAT has consistently been falling relative to BTC over the past 4 months. We can see that price action has found some form of support at a downside 1.616 Fibonacci Extension level (drawn in red) priced at 1,975 SATS. We can see that this level had also provided some level of support earlier throughout August.

If the market can remain supported by this level and continue higher, we expect immediate resistance to be located at the downside 1.414 Fibonacci Extension level priced at 2,815 SATS. Further resistance can be expected at the downside 1.272 Fibonacci Extension level priced at 3,399 SATS.

Alternatively, if the bears push the market below the 1,975 SATS support level, we expect immediate resistance to be located at the psychological round number handle of 1,500 SATS, followed by support at a short-term downside 1.272 Fibonacci Extension level priced at 1,270 SATS.

The technical indicators are also favoring the bears within the market as the RSI trades below the 50 handle. The RSI looks poised to break above 50 as it currently points in its direction. A sustained break of the RSI above the 50 handle would indicate that the bulls are regaining momentum and a potential recovery may be brewing in the market.

Related: Stratis: A Roundup of Q1 and Q2 2018 Achievements