Over the past week, there has been noteworthy bullish momentum in the realm of digital assets. Following a low point recorded on the 16th of September, the token experienced a remarkable 22% increase. This upsurge aligns with the overall positive market sentiment witnessed in recent weeks.
Starting from the second week of September, Bitcoin [BTC] embarked on a rally from $54k to $64.5k. This substantial 20% leap by the leading cryptocurrency has rejuvenated bullish sentiments across the market, including the momentum behind Stocks [STX].
STX Nearing the Upper Bound of its Trading Range
Since the beginning of July, Stocks have been moving within a range spanning from $1.32 to $1.97. The mid-point of this range at $1.645 has proven to be both a support and a resistance level over the past three months.
In the earlier part of September, bulls supporting STX faced resistance at the $1.645 mark, which was later converted into a supportive level during the recent upward trend.
In addition to the range highs, a barrier known as a bearish breaker block was detected on the daily chart below the $2 mark. This block has posed a notable hindrance to the bullish push in price.
A breakthrough may not happen immediately upon retesting this resistance level.
The daily Relative Strength Index (RSI) has displayed a bullish trend with upward momentum. The On-Balance Volume (OBV) has marked a local peak that previously acted as a resistance point over the last month.
Even if the buyers manage to breach this level, there exists another local peak in OBV from July which was inadequate to break the established range.
At present, a considerable influx of capital is required to propel Stocks’ prices above $2. Until such an event occurs, traders can use the boundaries of the range as their target points.
Notable Surge in Positive Sentiment on Social Platforms
Data analysis from Santiment has revealed a prevalent positive sentiment on social media platforms throughout September. This sentiment experienced a notable surge last week in conjunction with the breach of the mid-range resistance.
This optimistic shift could possibly be attributed to the announcement of Stocks integrating with the Aptos [APT] network, which enables the utilization of BTC within the APT network’s decentralized applications (dApps).
The rising Open Interest has also indicated a corresponding increase in bullish sentiment over the past few days.
Disclaimer: The opinions expressed in this article are personal and not intended as financial, investment, or trading advice.