By Franklin Smith
Stacks (STX) is among the few alternative tokens that recorded impressive gains within the current markets. STX surged 40% in the past week, following a rebound from the support at 40.3 to retest the nearest resistance at $0.46.
Nevertheless, the narrative shifted today as the chart revealed a failed trial to overcome the mentioned resistance, indicating bearish reversals for the token.
- The Stacks price chart presents reversal potentials from a descending resistance trend-line.
- Bear cycle inside the wedge setup hits a 30% decline.
- STX intraday trading volume is $241.5M, suggesting a 341.5% uptick.
The STX technical chart displays the 6-month downtrend within a plunging wedge formation. Several retests to these downside trend lines confirm that STX/USDT traders react to the pattern’s zones. Moreover, the declines recently plummeted the alternative tokens towards the $0.305 low on 14 June.
Nevertheless, improving market-wide sentiments saw STX bouncing back from the highlighted low and gaining 47% to the current prices at $0.45. Meanwhile, buyers could not overcome the descending trend-line despite the colossal inflow plus volume activity on 27 June.
The resistance trend-line rejected STX with a long tail, amplifying the massive supply momentum. Therefore, continued selling strength might see STX losing 30% to re-challenge the support at $0.3. Meanwhile, interested market players should wait for the pattern’s breakout to genuine rallies.
Technical Indicators
- Relative Strength Index
The daily Relative Strength Index slope highlighted a substantial rally, similar to STX’s price action. However, the indicator struggled to overcome the neutral 50, conforming absence of bullish dedication. That confirms the potential declines in Stacks.
- Exponential Moving Averages
The 50-day Exponential Moving Average helped sellers to revert STX from the trend-line. Nevertheless, investors would see a further confirmation if Stacks failed to steady beyond the latest attained 20-day Exponential Moving Average.
- Resistance zones – $0.5, then $0.63.
- Support zones – $0.37, then $0.3.
Furthermore, bears launched a downside move in the overall crypto market. The global cryptocurrency market cap lost 1.47% within 24 hours to $949.10 billion. Maintaining such narratives will support the downsides of digital coins. That will see STX plunging towards targeted value areas without friction.
Editorial credit: FellowNeko / shutterstock.com