STO Price Holds Key Level, Breakout Above $0.117 May Trigger 40% Rally

Price movement has gathered in a usual reversal formation, indicating that a breakout may happen.

A clear close above this level could confirm upside momentum toward the $0.16 area.

STO is holding its structure after rising 2.2% in price which could indicate stability in its movement.

StakeStone (STO) continues to trade within a defined falling wedge pattern on the 4-hour chart, a formation often associated with potential bullish reversals. As of the latest session, STO is priced at $0.1137, reflecting a 2.2% gain over the past 24 hours. The token is trading between a support zone of $0.1102 and a short-term resistance level near $0.117.

Falling Wedge Maintains Technical Validity

The last two weeks have shown STO price moving within the wedge boundaries, indicating lower highs and lower lows. This pattern typically indicates a decrease in selling pressure and can precede a breakout, especially when volume begins to pick up. After a significant fall observed on May 3, the asset could not create a stable upward pattern.

Upside Projection Points to 40% Gain

If the falling wedge pattern resolves to the upside, price projections suggest a potential move toward the $0.16 region — a gain of approximately 42.7% from current levels. Yet, analysts believe that reaching above $0.117 is necessary to confirm that there is any bullish momentum. Without increased trading activity, STO might continue moving within a range or dip down towards the older bottom.

STO Shows Relative Strength but Faces Crucial Breakout Test

The STO/BTC pair gains 0.8%, while the STO/ETH pair gains 2.3%, a sign of relative strength against major cryptocurrencies. These figures indicate rising investor demand but not enough to indicate a strong reversal of trend. Traders have to keep an eye on these pairs, especially if STO manages to break out of its wedge formation.

Despite the high optimism regarding the trend, a breakout hasn't occurred. Traders need to wait for higher volume and a confirmed close above the resistance levels before going long for the upside. If it doesn't break upward, it would invalidate the wedge and pave the way for another challenge of the $0.1102 support level.