Stacks targets $2.4: Will STX surge another 20%?
The buildup of limit orders at $2.2 could attract Stacks prices to it before a minor retracement.
- Volume indicators highlighted bullish conviction.
- An intermediate resistance before the May highs was identified.
Stacks [STX] was another altcoin to break out of a three-month-old range formation. Like Bitcoin [BTC] it had been in a downtrend since April on the higher timeframes.
The recent bullish sentiment and demand were driving steady gains.
In a recent report, it was highlighted that STX was likely to retest the range highs, but that a breakout would hinge on the OBV making a new local high. The price retest has come true and the OBV also made new highs.
Inspiring performance from the bulls
On the volume front, the bulls have put their best foot forward. Apart from the OBV making a new local high, the CMF was at +0.24. This is a level that the indicator has not reached since January 2023.
A CMF reading above +0.05 is enough to signal sizeable capital inflow into the market. Together, the volume indicators showed a strong likelihood of a range breakout for Stacks.
The daily RSI was also firmly bullish, and the bearish breaker block at the psychological $2 level was on the verge of being beaten.
The price action and indicators were healthily bullish. The next target would be $2.4, the resistance from May and June.
Orderbook heatmap gives clues on support/resistance
The order book heatmap from MobChart primarily underlines the strongest support/resistance levels nearby. Additionally, the build-up of limit orders at certain levels also instigates prices to move towards it.
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For example, a week ago, the $2 level had close to $1 million in limit orders. These were swept, and the price embarked on a minor price dip to $1.84 a few hours later.
Similarly, the build-up of orders at $2.2 could attract Stacks prices to it before a minor retracement.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
