Stacks [STX] emerged from a range pattern that had persisted for three months, much like Bitcoin [BTC], which had been experiencing a downtrend on the larger time scales since April.
The recent positive market sentiment and increased demand were fueling consistent price gains.
Recent analysis suggested that STX was poised to revisit the range highs, with the breakout contingent on the OBV establishing a fresh local peak. As anticipated, the price retest occurred, coupled with new highs in the OBV.
Encouraging Showing by the Bulls
Bulls have shown notable strength in terms of trading volume. In addition to the OBV hitting a new local high, the CMF indicator registered a reading of +0.24, a level not seen since January 2023.
A CMF above +0.05 typically signals a significant inflow of capital into the market. When considered collectively, these volume indicators strongly suggest a potential breakout for Stacks.
Furthermore, the daily RSI continued to exhibit bullish sentiment, with the $2 psychological level on the cusp of being breached.
Overall, the price action and indicators indicated a robust bullish trend, with the next target being the $2.4 resistance level observed in May and June.
Insights from Orderbook Heatmap on Support and Resistance
The order book heatmap generated by MobChart primarily highlights the key support and resistance levels in the vicinity. Notably, the accumulation of limit orders at specific levels can influence price movements towards those levels.
For instance, approximately a week prior, the $2 mark had nearly $1 million worth of limit orders. Following their execution, the price underwent a slight dip to $1.84 shortly after.
Similarly, the concentration of orders at $2.2 might attract Stacks prices towards that level before a minor pullback.
Disclaimer: The views expressed do not constitute financial, investment, trading, or any other form of advice; they represent solely the author’s perspective.