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Stacks (STX) Price Rejected by Long-Term Resistance, Is a Sell-Off Coming?

The price of Stacks (STX) has been rejected by long-term resistance and is showing some signs of weakness. It is expected to undergo a correction in the near future.

Weekly Outlook

The price of Stacks (STX) has surged by 582.13% since establishing a higher low in September 2023. This movement has propelled the price to break above the $1.75 resistance zone and reach the all-time high resistance level of $2.85.

Last week, the price was rejected at the $2.85 level (red arrow) and formed a doji candle, indicating the indecision of the bulls in pushing the price to higher levels.

The weekly RSI (Relative Strength Index) has formed a significant bearish divergence, often leading to a correction.

If a correction occurs, the STX price may drop to the previous resistance zone at $1.75, which is 28.18% lower than the current price.

stx-reject
STX/USDT weekly chart . Source: TradingView

Breakdown of Short-Term Pattern

The 4-hour chart reveals that the STX price has broken down below a short-term ascending parallel channel and confirmed it as resistance today (red arrow).

The RSI indicator has also confirmed the 50 level as resistance and sloped downward, suggesting that the bears have regained control in the short term.

Therefore, the STX price may decrease to the $2.06 zone in the next few days.

STX/USDT 4-hourly chart . Source: TradingView

Conclusion

The most likely prospect indicates that the STX price will undergo a correction in the near future. The nearest target is $2.06, and potentially lower to $1.75.

The bearish outlook may be invalidated if the price reclaims the support line of the channel at $2.63.

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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