Stacks (STX) Price Prediction: STX Token Flash 28% Rally Hints At A Bullish Reversal

The STX token recently exhibited a bullish reversal, breaking above its previous swing low. After reaching a high of $3.8460, the price declined, forming a lower low on the chart.

Stacks Token price showcased a promising 28.2% surge in its open interest, indicating a surge in the number of open positions, which amounted to $54.11 Million as per the data from CoinGlass. This depicted a rise in the traders’ interest in the derivatives of the Stacks token.

Moreover, a surge of 80% was seen in the derivatives traded volume of the Stacks token, which followed the surge in the spot volume. This highlighted the traders’ interest in both the derivatives and spot contracts of the Stacks token.

The liquidation data further depicted a battle between the buyers and sellers, with longs liquidated in the last 24 hours being to the tune of $170.81K, as against shorts liquidated, which were to the tune of $152.68K, closer to the longs liquidation.

A recent bullish reversal was seen in the STX token, where it broke through its previous swing low. Following a high at $3.8460, the price declined, forming a lower low on the chart. This downward price movement formed a falling wedge, a pattern that is usually associated with a bullish reversal.

With strong momentum, the STX token pressed on to break through the resistance line of the wedge, indicating a continuation in the bullish trend. The price has since found support at the breakout level, turning former resistance into new support.

This breakout, coupled with the recent bullish activity, signaled a potential continuation in the upward price movement of the STX token.

A technical indicator analysis showed that the STX token price has been trading below the 50-day and 200-day EMAs, with these moving averages forming a death cross. This pattern usually indicates a bearish trend, which aligns with the recent price action of the token over the past few weeks.

STX/USD Chart by TradingView

The MACD and signal line have remained closely aligned, with both metrics trading in the negative zone, further reinforcing the bearish sentiment.

However, a shift in momentum was seen, where the RSI recently crossed above the 50-level and the 14-day SMA. This breakout indicated a surge in positive momentum for the token’s price, which could potentially signal a reversal from the recent downtrend.

This article is intended for informational purposes only and does not constitute financial, investment, or other advice. The author or any mentioned in this article is not liable for any financial loss that may arise from investing in or trading. Please conduct your own research before making any financial decisions.

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