Stacks: How STX’s extended bullish uptrend could favor buyers

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

• STX sustained its bullish uptrend with a 9.5% bounce off a key Fib level.
• Shorts suffered 91% of the total liquidations within the past 12 hours. 

Stacks [STX] continued its bullish uptrend with a 9.5% bounce off the 23.6% Fib level ($0.617). Earlier, STX flipped bullish on the higher timeframe with a 28% rally from the $0.55 price zone.

Read Stacks’ [STX] Price Prediction 2023-24

However, buyers experienced a pullback at $0.678 before an extension of the bullish rally. With Bitcoin [BTC] trading above $30k, bulls could look to consolidate the bullish gains.

A full stack of gains for buyers

Source: STX/USDT on Trading View

The sustained selling pressure after the price rejection at the $0.9 price zone kept STX in a bearish downtrend. This saw the native coin of Stacks which is a Bitcoin layer for dApps and smart contracts sink to $0.4, resulting in a 52.5% loss in value.

A recent bullish reversal on 30 August was rejected at the lower low around the $0.55 price zone. This price zone has served as a critical barrier to a bullish rebound. However, the significant rise in bullish market conditions handed buyers a unique opportunity which was maximized to clear the selling pressure at the $0.55 price zone.

This brought back much-needed trading volume to STX with the On Balance Volume (OBV) registering a swift rise over the past week. Furthermore, the Relative Strength Index (RSI) revealed strong buying pressure, as it remained in the overbought zone.

Buyers can register more gains with another strong buying push toward the $0.7 to $0.75 price level. This would result in an additional 8-13% gain from the current price level of $0.658.

Sellers registered massive losses as bullish conviction grew in the derivatives market

Source: Coinglass

The bullish conviction on STX extended to the futures market, resulting in sellers experiencing massive liquidations. According to Coinglass

How much are 1, 10, and 100 STX worth today?

This amounted to 91.23% of the total liquidations within the period. Thus, it highlighted the growing bullish strength with the current price action strongly in favor of buyers.