Stacks (STX) has shown resilience in the face of the broader crypto market downturn, experiencing a continuous downtrend since reaching its peak of approximately $2.5 in December 2024. Following each peak, subsequent highs have been lower than the previous ones, with the current price position signaling a bearish trend as it sits below the 20 EMA, 50 EMA, and 200 EMA.
Currently, STX is trading at approximately $0.861, marking an 8% increase over the past day.
Is the recent price upswing an indication of potential recovery?
The 20 EMA, hovering around $0.92, acts as a dynamic resistance level for the price, which it is currently attempting to breach. A daily close above this level could signal a shift in short-term momentum.
Conversely, the 200 EMA serves as a crucial indicator for long-term trends, and as STX remains significantly below it, the bearish sentiment is likely to persist unless the price manages to break past and maintain stability within this range.
Looking ahead, the support level at around $0.74 will be pivotal in determining STX’s trajectory in the near term.
Considering the uncertainty circulating crypto exchanges following the $1.4 billion ETH hack on Bybit, the overall market sentiment may continue to weaken. In the event of STX following a bearish pattern, the range between $0.55 and $0.57 could offer substantial support.
Analysis of the daily chart indicates the formation of a descending channel or wedge from the high near $2.7 to recent lows. Sustained trading above this channel could lead to a much-needed recovery. However, for a more decisive reversal, STX must surpass its key moving averages and maintain higher lows consistently.
With the RSI just below 40, falling beneath the midline of 50, it suggests that sellers currently maintain control overall.
An uptick in RSI above 50 would align with bullish price movements, serving as a confirmation signal. Notably, the RSI showing a bullish divergence with the price hints at a probable near-term rebound gaining strength.
What Lies Ahead?
Traders should closely monitor the price’s ability to close above $0.92 (20 EMA) as an initial indicator of returning bullish momentum.
A breakthrough above the $1.14–$1.20 range (comprising the 50 EMA and a significant horizontal zone) would present a stronger case for a weakening downtrend.
In bearish market conditions, uptrends towards crucial EMA or horizontal resistance levels often attract sellers. Therefore, when eyeing a potential rebound trade, focus on trading volumes and the price’s ability to remain above these reclaimed levels, rather than just breaking past them momentarily.