Following a market correction that led to Stacks [STX] retracing to $1.89, the altcoin has shown a significant upward momentum in the past 24 hours, reaching a peak of $2.62 after a 19.63% hike.
Currently, Stacks is trading at $2.53, reflecting an 11.63% increase from the previous day.
During this period, STX’s trading volume has surged by 202.25% to reach $534.69 million, as reported by Coinglass.
While STX experienced a decline of 1.79% on weekly charts prior to these daily gains, it has soared by 29.42% on monthly charts.
Despite the recent surge, STX is still around 34.3% below its all-time high of $384.
With a growing demand for Stacks, the question arises: is the altcoin poised for a more sustained upward trend?
Analysis of STX Charts
Based on CryptoCrypto’s analysis, Stacks is currently witnessing a strong upward trend fueled by increased buying pressure.
There are indications of a bullish crossover approaching for STX, with the Relative Strength Index rising from 47 to 56 and the Moving Average dropping from 64 to 61.
This shift suggests that buyers are entering the market while the influence of sellers is waning.
Additionally, the Directional Movement Index shows a rising +DI and decreasing -DI, with STX’s +DI climbing to 24.86 and -DI falling to 25.
This trend signals a potential bullish crossover for STX, confirming the strength of the uptrend.
Furthermore, long position holders are driving this bullish sentiment, dominating the market according to Coinglass data.
The Long/Short Ratio reveals that long positions hold a majority share of 54.69% in a 4-hour time frame, indicating widespread investor confidence in a price increase.
The demand for long positions is reinforced by a positive aggregated Funding Rate from exchanges, suggesting that investors are securing positions and willing to pay a premium fee for them.
In essence, Stacks is currently experiencing robust upward momentum with an influx of buyers.
As a bullish crossover signal emerges, STX could potentially observe further price gains. Should current conditions persist and the crossover is confirmed, Stacks might surpass the $2.7 resistance level.
A breakthrough beyond this point could propel the altcoin towards $3.04. Conversely, if selling pressure resurfaces, STX could retreat to $2.4.