Stacks (STX) Eyeing a Reversal: Could It Flip Toward The $2 Mark?

• 1 STX price persisted in forming the lower low swings and tried to surpass the 20-day EMA mark.
• 2 The coin is in a correction phase and is eyeing to regain its shine.

The Stacks (STX) coin price has persisted in losing the gains and has approached the downside region of $1.40 this week. At the bottom, a morning star pattern followed by a decent recovery was exhibited, displaying the buyer accumulation.

Meanwhile, the coin is attempting to climb above the 20-day EMA mark for a follow-on recovery ahead. If the Stacks coin price achieves the $2 mark, a short covering move will soon be triggered, pulling the STX price toward the $2.40 mark.

Interestingly, a falling wedge pattern was observed, which is known for its bullish reversal. STX is on the verge of exhibiting a rebound ahead. Once STX begins to sustain above the 20-day EMA, it will regain the shine slowly & steadily.

At press time, the Stacks price traded at $1.71 with an intraday surge of 5.36%, reflecting neutrality on the charts. It has a monthly return ratio of -12.30% and 144.30% yearly, reflecting a short-term downtrend.

The pair of STX/BTC is at 0.0000280 BTC, and the market cap is $2.52 Billion. Analysts are neutral and suggest that STX may retain momentum and reach the $2 mark soon.

Stacks Forms Falling Wedge Pattern: Reversal Imminent?

STX delivered the lower top and lower bottom swings for the past weeks and was corrected by over 40% in the past two months. Amidst the market volatility, significant distribution was played by the bear cartel in this counter.

Buyers are in the game until the coin secures its downside support of $1.50, a free fall might be seen ahead. Meanwhile, no further sign of a selloff was spotted, and the coin could rebound soon.

Source: TradingView

The Relative Strength Index curve stayed below the midline region and spotted a positive divergence. Meanwhile, the MACD indicator conveys a bullish crossover on the charts and begins to plot the green bars on the histogram.

Its trading volume sharply spiked over 75% to $117.81 Million, resembling the demand surge. Notably, the Stacks coin was ranked 42 and had a total supply value of 1.82 billion.

Per the Fib levels, the coin took support on its 23.6% zone and is close to the lower Bollinger Band support region. 

In a tweet, Eugene Ng Ah Sio mentioned that the STX coin might flip the gains from the bottom and could revisit the $2.70 mark soon.

Source: X

Futures Open Interest (OI) Data Reveals Long Buildup Activity

Source: Coinglass

The Open Interest (OI) data noted a rise of over 9.61% to $71.15 Million, conveying that buyers have regained momentum and begun to add fresh longs.

The immediate support levels for the Stacks coin are $1.50 and $1.30, whereas the key upside hurdle is around $2.00, followed by $2.20.

Conclusion

The Stacks coin price retested the 20-day EMA mark and is trying to overtake the hurdle to extend the pullback momentum. Meanwhile, a sharp reversal may be seen ahead if the coin escapes the channel’s trajectory.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.

Andrew Smith

Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages ​​and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.