As of the time of composing this article, Stacks (STX) was valued at $1.71, marking an 11.73% decrease in the last 24 hours and a significant 26.06% drop within a week. The cryptocurrency, with 1.5 billion STX in circulation, boasted a market capitalization of $2.57 billion.
Within the past day, trading volume hit $439 million, showcasing notable activity amid the price fall.
The recent dip in STX’s price appears to be part of a broader market downturn, nudging the token towards a crucial support level within a prolonged ascending channel.
Upward Channel Signifies a Long-Term Positive Trend
Based on CryptoCrypto’s assessment, Stacks appeared to be operating within a specific ascending channel, indicating a broader bullish trend despite recent setbacks. Currently, the price is nearing the lower boundary of this channel, hovering between $1.70 and $1.80 – a range that has consistently served as robust support.
The upper limit of the channel hints at a possible target close to $10, suggesting potential for future price recovery if the support remains intact.
Analyzing this phase as a plausible buying opportunity, renowned analyst Ali Martinez underscored the significance of these levels for long-term investors.
Recent Adjustment and Crucial Levels
After retracting sharply from its mid-channel resistance around $4.50, Stacks witnessed a 27.35% decline during this correction. While such pullbacks are common in extended uptrends, they might offer opportunities for accumulation.
The support zone at $1.75 – $1.78 holds pivotal importance in determining STX’s next trajectory. Successful maintenance at this level could pave the way for a rebound, with initial resistance targets located between $2.40 – $2.50 and stronger resistance near $2.80 – $3.00.
Nonetheless, a breach below $1.75 might instigate further declines, with subsequent major support levels situated at $1.50 and $1.40.
Momentum Indicators Highlight Varied Trends
As of now, the Awesome Oscillator (AO) is exhibiting red bars, indicating bearish momentum. Nevertheless, a declining histogram suggests a potential easing of selling pressure. To initiate a bullish turnaround, green bars on the AO alongside a breakout above lower-high resistance thresholds would be necessary.
Traders are advised to closely observe the $1.75 range for indications of a rebound or further downtrend. A sustained breakthrough above this level could propel the price towards the $2.00 – $2.40 range in the short run.
Prospects and Critical Metrics to Monitor
Given STX’s proximity to its support level, stakeholders are vigilant regarding key thresholds that will determine the upcoming trajectory. The immediate support is pegged at $1.75, whereas major resistance levels are noted at $2.40 and $2.80. Any breach of the lower boundary of the ascending channel might bring downside targets like $1.50 or lower into play.
Though the correction has been steep, it aligns with Stacks’ overall growth pattern, suggesting a chance for a rebound if support levels remain intact.