STORJ price has reclaimed $0.50 territory for the first time since September 2022. On-chain analysis unveils the main drivers and the like Stojr price action in the weeks ahead.
The STORJ price currently sits at $0.52, a new 2023 peak. With whale investors increasingly moving tokens into self-custody, will it drive the price rally further?
What is STORJ and What’s Behind the Recent 120% Price Rally?
STORJ is an open-source cloud storage protocol. It provides a decentralized cloud storage infrastructure to users. Network participants, i.e., Space providers, get paid STORJ tokens in exchange for rendering bandwidth and storage capacity.
Global demand for affordable cloud storage and the influx of capital investment from crypto whales appear to be the main drivers behind the ongoing STORJ price rally to a 2023 peak of $0.52.
In an indication of this, crypto sleuth platforms have recently spotted several whale wallet addresses shifting millions of STORJ tokens out of centralized exchanges.
Lookonchain is a crypto analytics platform that monitors milestone on-chain activity of whale wallets and recognized smart-money investors.
The image above illustrates how four whale wallets withdrew 40.59 million STORJ worth $20 million from exchanges in the past month. When whale investors start moving tokens from exchanges, they opt for long-term self-custody, potentially for future gains.
While this helps the investors achieve enhanced security and internal controls, it also inadvertently reduces market supply drastically.
Notably, the 40.59 million exchange outflows by the whales work out to 9% of the total circulation supply. Evidently, taking such a large number of tokens off the market has contributed immensely to the 120% STORJ price rally in the last 30-days.
STORJ could enter further price gains if this exchange supply continues to dwindle.
The Exchange Outflow Wave Has Spread Across the Ecosystem
A vital on-chain indicator shows that other strategic investors have mirrored the whales’ exchange outflow trend. This move could intensify the STORJ price rally.
As depicted below, the number of STORJ exchange outflows exceeded inflows by 7.31 million tokens on October 8. Bar September 18, the last time STORJ exchange netflows hit this level was back in March 2021, the day before the price hit an all-time high of $3.81.
Exchange Netflows are calculated by subtracting the daily token outflows from the new inflows. A positive netflow indicates more assets flowing into exchanges, while a negative netflow suggests more assets are leaving crypto exchanges.
With whales and overall retail investors increasingly moving their STORJ tokens off exchanges this week, it suggests growing confidence in the cryptocurrency’s long-term prospects and a belief that its price will rise.
In summary, similar outflows recorded on October 8 were observed in March 2021 and September 2023, respectively. In both cases, Storj’s price delivered double-digit gains within weeks.
Hence, going by historical on-chain data trends, Storj holders can anticipate another leg-up in the weeks ahead.
Storj Price Prediction: $0.70 is Within Reach
The Global In/Out of Money Around Price (GIOM) data, which depicts the entry price distribution of current Storj holders, indicates a neutral price consolidation.
It shows that the STORJ price is trending between two major support and resistance clusters. However, increasing exchange outflows could tilt the tide in the bulls’ favor.
As shown below, 8,250 addresses had bought 42.8 million tokens at the maximum price of $0.65. Considering they have been HODLing at a loss for over a year, they could sell early once the price crosses $0.60.
But if the exchange outflows boost their confidence, they could hold out for the Storj price rally to hit $0.70 before booking profits.
Still, the bears could turn the tide if the price wobbles below $0.30. But as depicted above, another significant cluster of 5,530 addresses had bought 55.7 million tokens at the minimum price of $0.45.
With the recent spate of exchange outflows, many of them could HOLD and force an instant rebound.
But if the Storj price fails to hold that vital support level, it could lead to a prompt reversal toward $0.30.
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.