Stacks (STX) Price Bounces Strongly From Previous Resistance, What’s Next?
The price of Stacks (STX) has confirmed the previous resistance zone as supportand is showing decisive bullish signals. It is expected to continue rising in the near future.
The STX price has declined since reaching its yearly high at $2.06 in early January 2024. However, in the three weeks following, STX rebounded from the previous resistance level at $1.25 (indicated by the green arrow) and formed a bullish pin bar candle.
The retest after the breakout is a healthy move and often leads to the continuation of the previous uptrend.
Indeed, STX broke above last week’s high at $1.625, signaling strong buying pressure at higher levels.
The weekly RSI (Relative Strength Index) remains comfortably within the overbought zone and is trending upward, indicating that the bulls are in control.
Therefore, the STX price may rise to the yearly high at $2.06 in the near future. A break above this level could send it up 57.42% to the next long-term resistance at $2.70.
Ascending Parallel Channel
The 4-hour chart shows that STX has been rising inside an ascending parallel channel since January 23, 2024. This is a bearish pattern that often leads to a breakdown in most cases.
However, STX has surged rapidly since bouncing off the channel’s support on February 6 (indicated by the green arrow), raising suspicions of a breakdown.
The 4-hour RSI supports the possibility of further upward movement as it enters the overbought zone and has not yet shown any bearish divergence.
Therefore, it is likely that STX will break above the ascending channel and reach the yearly high at $2.06 in the next few days.
Technical signals suggest that STX will continue to rise in the near future. The nearest target is found at $2.06, with potential further gains up to $2.7.
Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information. Not Financial Advice.
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