- Stax has a strong bullish outlook for the coming weeks.
- A drop to $1.7 could be an opportunity for buyers.
STX (STX) had strong gains in December and January. Bitcoin (BTC) has seen increased volatility over the past month after facing strong selling pressure that pushed the price back to record lows. This caused STX to revert some of its recent gains.
Prices have risen in the last 24 hours due to new influx of demand. Sentiment was also in favor of buyers as Stacks targets the $2.45 level next.
Stack bulls should curb their FOMO and wait.
Source: STX/USDT on TradingView
On the 1-day chart, STX’s market structure is clearly showing strength. RSI has also shown upward momentum, exceeding the neutral 50 level since mid-November.
The rally surged after a reversal of the $0.69 resistance level in December.
This led to a significant rise in OBV, indicating high purchase volume. At press time, OBV continued to move higher, signaling widespread buying pressure. This indicated that the upward trend was likely to continue.
The $1.6-$1.72 area is highlighted with a turquoise box. This represents a resistance zone over the past two weeks that has been significantly breached in recent hours. So retesting this zone would be a good buying opportunity.
Buying and bullish sentiment are gaining strength again.
Source: Coin Analysis
Starting on January 3rd, CVD spots began to decline. Open interest showed a downward trend from January 5th to 7th. During this period, STX prices also fell, showing a strong bearish bias in the short term.
Over the past two days, this has all taken a U-turn.
Read STX’s 2024-25 price prediction
Spot CVD began to rise tremendously, and OI also rose by more than $30 million. The price also rebounded and reached $2. This was a sign that STX could rise much higher, but we do not discount the possibility of a decline to $1.7.
To the north, the $2.12 and $2.44 levels are expected to be obstacles to price growth. This is because it was near the mid-range and upper end of the range in which STX traded from October 2021 to mid-January 2022.
Disclaimer: The information presented does not constitute financial, investment, trading, or any other type of advice and is solely the opinion of the author.