- Storj crypto price has plunged hard in the past two days.
- This is a sign that the pump and dump scheme is working.
- The token plunged after the strong US jobs numbers.
Storj price has pulled back sharply after surging hard on Wednesday. The token jumped to a high of $0.5805, the highest level since August last year. After soaring to that high, the token has plunged by more than 36% to the current $0.3654. This plunge has brought the total market cap to over $151 million.
Volume tumbles
Storj is a leading company that introduced the concept of decentralized storage. Instead of having centralized servers, the company uses a decentralized format where anyone can provide their free storage.
Individuals and companies can leverage Storj to store their files for a fraction of the cost. The platform uses a freemium model, where it provides the service for free and then charges a small fee for more storage. Storj premium version starts at $4 per terabyte.
Therefore, Storj competes with the popular file storage platforms like Box, Dropbox, OneDrive, and Google Drive among others. Additionally, the platform provides CDN services that help companies supercharge their websites.
Storj price jumped sharply on Wednesday. There was no clear cause for the jump. And a closer look shows that most of the token’s volume came from Binance, the biggest exchange in the world.
Therefore, there is a likelihood that this jump happened because of a pump-and-dump scheme. A pump-and-dump scheme happens when a single or a group of individuals manipulate the price and then exit. This is what I believe happened with eCash, which I wrote about here.
Storj price also lost momentum after the strong American jobs numbers, which pushed bond yields higher.
Storj price forecast
The daily chart shows that the Storj price jumped to a high of $0.5800 on Wednesday, the highest level since August last year. It then quickly dropped and moved slightly below the important support level at $0.40. The token remains above the 100-day and 50-day exponential moving averages (EMA).
As it dropped, the token also moved below the important support level at $0.5360, the highest level on February 20th. The Relative Strength Index (RSI) has moved from the extreme overbought level of 87 to the current 60. Therefore, there is a likelihood that the token will continue falling as sellers target the next key support at $0.30.
