Storj (STORJ) soars – but why?

 

Price action

Having closed at $0.137 on Valentine’s Day (14th Feb), the coin closed at $0.346 just two days later on the 16th: a 153% increase.

At the time of writing, Storj sits at $0.289, representing in excess of a doubling of price in 72 hours.

3-month price/volume chart (coinmarketcap)

 

As you can see from the graph, trading volume spiked enormously. On February 14th, around $365,000 of STORJ was traded; while just three days later over $72 million was traded in 24 hours: a 200x in volume.

Explanation

There has been considerably little ‘buzz’ around Storj to justify this price action. In fact, analysis of social channels demonstrates that the vast majority of all conversation around Storj concerns this recent price and volume spike, as opposed to a major development.

Just over two weeks ago, Stork released their V3 Explorer, which has received ‘good’ feedback, according to the team.

However, it is unlikely this new development is responsible for the stratospheric price spike.

Two days before the price action Storj announced that Katherine Johnson, Director of Compliance Regulation at Coinbase, was to join the Storj Board of Directors. Though, it also seems unlikely that this prompted the price hike, as this news was released on the 13th, while the spike first occurred on the 16th.

The Verdict

While Storj certainly has had some positive developments in recent weeks, including the appointing of Katherine Johnson and the launch of their V3 Explorer, this news alone does not explain the magnitude and explosive-nature of the price action we have seen over the past 48 hours.

As such, it appears that this could be another case of explosive, inorganic growth of an altcoin with (relatively) low daily volume.

What do you think? Comment below…

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