contributor
Posted:
- STX surged by 15.68% over the past week.
- An analyst eyed a 140% increase to $3.78.
Over the past 30 days, the altcoin market has attempted to recover, making significant gains. Amidst this recovery, none has remained consistent like Stacks [STX].
As of this writing, STX was trading at $1.61, marking a 15.68% surge on weekly charts. Also, on monthly charts, it increased by 5.78%.
Despite the upsurge, STX remained 58% below from its ATH of $3.92 reached on the 31st of March. However, the recent price movements have revived optimism, with analysts betting big on altcoin’s future.
For instance, the Popular crypto analyst Johncy Crypto predicted a 140% increase for STX, citing breakout from the downward channel.
What prevailing market sentiment suggests
In his analysis, Johncy highlighted one key indicator showcasing that Stacks was ready for a massive rally.
Source: X
STX has broken out of its long-term downtrend channel. This breakout indicated a potential trend reversal.
In context, a breakout above a long-term downtrend indicated that the downtrend was weakening, as buyers gained strength.
This shift signaled that the market was transitioning from a period of lower lows and lower highs to higher lows and higher highs — the start of a new uptrend.
Thus, STX could surge toward the $3.78 target, post a 140% increase.
What STX charts suggest
Source: TradingView
Stacks’s Directional Movement Index showed that the positive index had crossed over the negative index. The positive movement index was at 22, above the negative index at 17.
This indicated that buyers were becoming more dominant in the market. It’s a signal that a bullish trend may be starting, or the market has a strong upward momentum.
Source: Coinglass
Additionally, STX’s liquidation for long positions has remained low over the past weeks and has not hit $500k since the market crash of the 5th of August.
This showed that STX was enjoying favorability among long-term investors, suggesting confidence in the altcoin’s future prospects.
Source: Santiment
Finally, STX’s Open Interest in USD per Exchange experienced a sustained uptrend over the past week, as it increased from a low of $14 million to $19.6 million at press time.
This suggested that new positions were being opened while investors continued to hold existing ones.
Read Stacks’ [STX] Price Prediction 2024–2025
Therefore, as Johncy noted, STX is set for further gains. If the prevailing positive market sentiment holds, Stacks will break out from the $1.8 resistance.
A breakout from this level will strengthen the altcoin to attempt the $2.1 resistance level.
Credit: Source link