Stacks saw an increase of more than 40% in less than seven days. Let’s take a look at the future outlook for the STX price.
Status of Stacks (STX)
After reaching a bottom around $0.20, the price of Stacks recorded a significant increase, propelling it above the psychological threshold of $1. Following this rise, the price of the cryptocurrency began a correction, which found its low point around $0.44. It was from this price level that STX resumed its rally, surpassing its previous high and reaching $2 again. We can note that this movement allowed the break of the 50% Fibonacci retracement level, taken into account since the historic peak of the Stacks.
Recently, the price of Stacks underwent a correction, falling to $1.25, before resuming its upward momentum. It can be observed that STX price is above the 50 and 200 day moving averages, which supports the idea that STX is in an uptrend. On the oscillator side, we can see that they have bounced above the midpoint and crossed their previous high, thus invalidating a recently observed bearish divergence.
The current technical analysis was carried out in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Today trainer at Family Tradinga community of thousands of own-account traders active since 2017. You will find Lives, educational content and mutual assistance around the financial markets in a professional and warm atmosphere.
Focus on derivatives (STX/USDT)
It can be seen that the open interest of STX/USDT perpetual contracts increased along with its price with a positive funding rate. Thus, the simultaneous increase in these suggests that traders are generally optimistic about the future performance of the cryptocurrency. However, it is important to keep in mind that such a situation can paradoxically indicate excess optimism increasing the risk of a correction. Regarding liquidations, it should be noted that reaching the threshold of $1.87 resulted in several forced liquidations of short positions. This shows selling momentum that is being forced to capitulate, thus supporting Bitcoin’s uptrend. Today, it seems that Stacks continues in this dynamic, without significant liquidation, but with a funding rate that continues to increase.
The liquidation heat map for STX shows that the barrier around $1.6 and $1.9 has been breached. It seems that this phenomenon has visibly stimulated a contained buying interest in cryptocurrency. Currently, the most relevant liquidation zone for STXUSD is around $1.4. As the market approaches this level, we could see a massive triggering of orders, which would potentially increase the volatility of the cryptocurrency. This area therefore represents a major point of interest for investors.
Hypotheses for the price of Stacks (STX)
If the price of Stacks manages to stay above $1.2, we could anticipate a continuation up to the threshold of $2.9 – $3. The next resistance to take into account, if the bullish movement continues, would be the ATH of the STX at $3.37 and above if buying interest continues to dominate. At this stage, this would represent an increase close to + 60%.
If the price of Stacks fails to remain above $1.2, we could consider support for buying interest in the $0.9 area. The next level to take into account, if the bearish movement continues, would be around $0.6. At this stage, this would represent a drop close to – 70%.
Conclusion
The Stacks continues its upward momentum and seems to want to regain its all-time high. There is every reason to believe that this could happen. However, let’s not forget that the market can be subject to strong periods of volatility. Thus, it will be crucial to carefully observe the price reaction at different key levels to confirm or refute the current hypotheses. It is also important to remain vigilant against potential “fake outs” and “market squeezes” in each scenario. Finally, let us remember that these analyzes are based solely on technical criteria and that the price of cryptocurrencies can also evolve quickly depending on other more fundamental factors.
Maximize your Tremplin.io experience with our ‘Read to Earn’ program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
