Can Stacks (STX) defy the broader market’s downturn after THIS breakout?

• STX remains in a broader downtrend below key EMAs, with immediate support at $0.74 and a deeper support zone around $0.55–$0.57.
• A daily close above $0.92 (20 EMA) plus an RSI move above 50 could signal a short-term reversal

Stacks (STX), at press time, aligned with the broader crypto market’s downturn and witnessed a sustained downtrend since peaking at around $2.5 in December 2024. Each peak since that top has been lower than the last. In fact, the price is right now below the 20 EMA, 50 EMA, and 200 EMA – Typically a strong bearish sign.

At the time of writing, STX was trading at around $0.861 – Up by nearly 8% over the past day. 

Can the recent rebound set the stage for a recovery?

The 20 EMA (exponential moving average) at around $0.92 was the closest dynamic resistance for the price. Price was trying to approach or topple it. A daily close above this could signal a short-term shift in momentum.

On the other hand, the 200 EMA is a reliable indicator of long-term trends. STX seemed to be well below it, so the long-term price structure will remain bearish unless the price can break above and sustain this zone.

Going forward, the immediate support at around $0.74 will be crucial for gauging STX’s trajectory.

The broader market sentiment may weaken further due to uncertainty surrounding crypto exchanges after Bybit’s $1.4 billion ETH hack. If STX follows the bearish trend, the $0.55–0.57 range could offer a deeper support zone.

Source: TradingView, STX/USDT

The daily chart revealed a descending channel (or wedge) from the top of near $2.7 to recent lows. If the price sustains above this channel, it can lead to a well-needed rebound. However, for a more convincing reversal, STX must break above its key moving averages and sustain higher lows.

The RSI was just under 40 on the chart, below the midline (50) – Indicating that sellers still have the upper hand overall.

A move above RSI 50 would coincide with bullish price action, so keep an eye out for that as a confirmation signal. With RSI seeing a bullish divergence with the price action, a stronger near-term rebound might be probable.

What to look for next?

Traders should look for the price to close above $0.92 (20 EMA). That would be an early sign of bullish momentum returning.

Reclaiming $1.14–$1.20 (50 EMA + major horizontal zone) would be a stronger statement that the downtrend is weakening.

In a bearish market, rallies into key EMA or horizontal resistance zones often attract sellers. If you’re looking to trade a rebound, keep an eye on volume and whether the price can hold above-reclaimed levels, rather than simply wicking above them.