STG Price Soars as Stargate Finance’s Token Forms Double-Top

STG price surged to a high of $0.7566 this week as interest in DeFi tokens jumped. Stargate Finance’s native token has risen by over 85% from the lowest point in 2022. So, what is Stargate and why is the token soaring?

What is Stargate Finance?

DeFi has emerged as one of the most important areas in the blockchain industry. In fact, with the metaverse and NFTs struggling, it is the only bastion of hope for the sector. While the amount of assets held in DeFi has dropped recently, it is still worth about $70 billion. And DEX protocols like dYdX and Uniswap are handling hundreds of millions of dollars every day.

Stargate Finance is a little-known platform in the DeFi industry. It exists in numerous blockchains like Ethereum, Avalanche, BNB Chain, Arbitrum, and Optimism. Like most cross-chain blockchains, Ethereum is the most dominant player in Stargate, where it has a TVL of more than $102 million.

Stargate Finance is a DeFi protocol that makes it possible for users to stake, farm, and transfer tokens across multiple chains. It describes itself as a fully composable liquidity transport protocol that lives at the heart of the omnichain. 

As such, you can swap tokens on a 1:1 basis and add liquidity to Stargate’s Omnichain protocol and earn stablecoin rewards. Also, liquidity providers can farm their LP tokens in exchange for STG rewards. In the past few months, the total value locked (TVL) in its ecosystem has dropped from over $4 billion to about $379 million.

It is unclear why Stargate Finance token has soared in the past few days. A likely reason is that a short-squeeze is going on. As I explained in this article, we have recently seen a lot of short sale liquidations in the crypto industry. 

Stargate Finance price prediction

STG price has gained momentum in the past few months as demand for the coin rises. As it surged, it managed to move above the key resistance level at $0.5506, the highest point on October 29. It also rose above all moving averages. But now, the token is forming a double-top pattern whose upper side is at $0.7566. This pattern is usually a good predictor of a bearish move. 

Therefore, I suspect that the token will soon have a bearish breakout, with the next key resistance level to watch being at $0.60.