Stacks [STX] is showing signs of a potential breakout as it forms a bullish pennant pattern after a period of consolidation. The cryptocurrency is gearing up for a potential rally following weeks of stability.
At the current time of writing, STX is trading at $1.91, marking a 4.08% increase. The main question now is whether STX can surpass its crucial resistance level to kickstart its upward momentum.
Potential Breakout Target at $2 Resistance
Recently, Stacks has formed a classic pennant pattern, which often signals significant price movements. The consolidation phase seems to be paving the way for a breakout.
This pennant pattern suggests a potential price surge as it nears its apex. Many traders are closely monitoring STX to see if it can break through resistance levels and begin its upward trajectory.
The major resistance level for STX currently stands at $2.00, a point that has historically posed a challenge for the coin. Breaking above this level would indicate the momentum for a breakout.
Traders are eyeing a price increase of 20%-25% post-breakout, possibly propelling the cryptocurrency towards $2.40 based on projected targets.
Therefore, the upcoming days will be crucial for STX as it aims to overcome this resistance barrier and confirm its bullish trend.
The Impact of Social Volume on the Breakout
STX’s social volume has seen a recent uptick, currently at 24, indicating growing interest in the asset. However, this level remains lower than the peaks seen in late October, where social volume surged above 70.
If social volume continues to rise, it could serve as a catalyst for the anticipated breakout, driving the price higher with increased momentum.
Long/Short Ratio Influence on Price Perspective
The long/short ratio for STX reveals that 46.53% of traders are currently in long positions, while 53.47% hold short positions. This slightly bearish sentiment reflects some market indecision.
A bullish breakout could result in a notable shift in this ratio, leading to more long positions being opened and fueling an upward trend. Any breakthrough of resistance levels could swiftly alter the long/short ratio.
Is a Breakout Imminent for STX?
STX seems poised for a bullish breakout, with a pennant pattern hinting at a potential surge of 20-25%. A successful breach of the $2.00 resistance level could propel the cryptocurrency towards $2.40.
Technical indicators, social volume, and the long/short ratio collectively suggest significant price movements on the horizon. Hence, STX appears primed for a positive price rally.