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Amidst the volatility in the cryptocurrency market, some altcoins are standing out and experiencing triple-digit gains. One characteristic of bear markets is the occasional short-term surges in a few altcoins, which are often triggered by speculative traders with the support of declining volumes and weakening order books.
STORJ Coin Analysis
The price of STORJ has surpassed $0.5 for the first time since September 2022. The popular altcoin continues its rally with an 8% increase, trading at $0.52 with significant exchange outflows. The increasing demand in shallow markets makes it even easier for whales to profit.
The peak of 2023 was set at $0.52 after the recent surge. In short, STORJ is an open-source cloud storage solution. It offers a decentralized cloud storage infrastructure, with service recipients making payments in STORJ. It’s similar to what companies providing server hosting services do. Just as Render Token rents GPUs, STORJ offers cloud storage services.
Why is STORJ Rising?
There is a growing demand for cloud storage services on a global scale, and the price increase in STORJ is driven by whale movements. Platforms monitoring crypto whales have reported how millions of tokens have been transferred from exchanges recently.
According to data compiled by Lookonchain, 4 whales withdrew $20 million worth of tokens from exchanges last month. When whale investors start moving tokens away from exchanges, it indicates their accumulation for potential future gains.
Given that exchange outflows account for 10% of the total supply, a 120% price increase is highly normal. This movement signifies a significant decrease in available supply on sell-ready exchanges, leading to a scarcity.
As seen below, the number of STORJ exchange outflows surpassed inflows on October 8th, reaching 7.31 million tokens. The last time STORJ exchange net flows reached this level, the price reached $3.81 in March 2021. This data indicates that the price increase could continue.
If exchange outflows continue to increase, the price of STORJ Coin could establish a new 2023 high at $0.7. A support level of $0.45 is expected in the event of a potential downturn.
