While other altcoins experienced high lows following Bitcoin declines in the past months, Stacks [STX] remained in an uptrend for six weeks. Over this period, STX has increased its market value, and prices have constantly increased.

However, as the crypto market recovers and BTC surpasses the $69k mark, STX seems to be losing momentum. The current price action has left analysts concerned with some showing optimism, while others think a reversal is imminent.

STX’s prevailing market sentiment

Over the past month, STX has experienced a sustained uptrend. Still, the prevailing market sentiment shows positivity and optimism.

According to Market Prophit, STX is enjoying a positive market sentiment with a crowd sentiment of 0.0785 and a Crowd buzz of 0.9589. Analysts are optimistic and see a potential breakout and continued upward momentum.

Jonathan Carter shared his prediction on his X page, suggesting a bull run of $3.75. He noted that,

“#STX Stacks is forming a descending channel on higher timeframes with a bullish flag below the main trendline. A breakout seems imminent, so watch this space closely. Targets: $2.20, $2.45, $3.15 and $3.75.”

Equally,  LilaMIa shared her optimism, arguing that STX will experience a bullish run if it breaks out. She noted that,

“Still Trying To Clear Descending Channel Still Expecting Massive Bullish Wave Incase Of Successful Breakout”

Additionally, Whales Crypto Trading also shared their prediction of seeing a bull run hit $2.4. They shared that,

“Stacks is breaking descending channel on 8h timeframe. Upside breakout could trigger massive bull run towards $2.40.”

What STX price chart Indicates

Notably, AMBCrypto’s analysis showed that STX was experiencing a strong uptrend with potential for further continuation. STX was trading at $1.94 after a 3.24% gain on daily charts, as of this writing. The altcoin has experienced a 16.71% surge over the past 30 days.

Looking at STX’s Directional Movement Index, the altcoins DMI shows a strong uptrend. The positive index was at 25.98, while the negative index sat below 16.51, suggesting the upward momentum is strong.

Also, the Aroon Up line at 85.71% is above the Aroon Down at 71.43%, further proving the current trend’s strength.

Additionally, the Relative vigor index (RVGI), a technical indicator that measures the conviction of assets trend, is positive at 0.027. After crossing its signal line from below, the RVGI has experienced a bullish crossover.

This shows that closing prices are higher than opening prices, suggesting a bullish momentum.

Looking further, AMBCrypto’s analysis of Santiment data also showed that the funding rate aggregated by the exchange is positive at 0.01. This implies that long position holders are paying short positions, indicating traders are willing to pay a premium to hold their positions.

Such a scenario suggests investors are confident with STX’s direction and anticipate a price increase.

Finally, STX’s OI-weighted funding rates have been positive over the past weeks. A positive WFR indicates long position holders are willing to pay a premium to keep their position.

This further confirms our analysis of Santiment data, indicating that the current trend will continue.

STX reversal or breakout?

At press time, STX experienced 3.68% gains on weekly charts. Equally, our analysis shows the altcoin is enjoying a positive market sentiment with buyers having control of the market.

Therefore, if the current market conditions persist, the altcoin will break out of the critical resistance of $2.04. A breakout from this zone will prepare the crypto to challenge the $2.47 resistance level.

However, if the bulls lose momentum, a reversal will occur and decline towards the immediate support level of $1.80.

Source : AMBCrypto - Jul 29, 2024