Stacks: Price above $2, but predictions advice you to wait
- Stacks has a strong bullish outlook in the coming weeks.
- A drop toward $1.7 could present buyers with an opportunity.
Stacks [STX] has rallied hard in December and January. The latter month saw heightened volatility after Bitcoin [BTC] faced strong selling pressure that forced prices back to the range lows. This saw STX retrace a part of the recent gains.
Over the past 24 hours, a new influx of demand saw prices climb higher. Sentiment was also in favor of the buyers as Stacks targets the $2.45 level next.
Stacks bulls must rein in the FOMO and wait
On the one-day chart, the market structure of STX was firmly bullish. The RSI has also been above neutral 50 since mid-November to signify upward momentum.
The rally skyrocketed in December after the $0.69 resistance level was flipped.
This saw the OBV climb upward by a huge margin to denote high buying volume. At press time, the OBV continued to trend higher to signal buying pressure was prevalent. This suggested that the uptrend is likely to continue.
The $1.6-$1.72 area was highlighted by a cyan box. It represented a resistance zone of the past two weeks that has been emphatically breached in recent hours. Hence, a retest of this zone would offer a good buying opportunity.
Buying volume and bullish sentiment are gaining power again
On the 3rd of January, the spot CVD began to fall. The Open Interest trended downward from the 5th to the 7th of January. STX prices also fell during this time, showing a strong bearish bias in the short term.
In the past two days, all of this has taken a U-turn.
Read Stacks’ [STX] Price Prediction 2024-25
The spot CVD began to climb enormously, and the OI has risen by more than $30 million. The prices have also bounced to reach $2. This was a sign that STX could climb much higher, but does not discount the possibility of a dip toward $1.7.
To the north, the $2.12 and $2.44 levels are expected to serve as obstacles to price gains. This is because they had been the mid-range and range-high levels of a range that STX traded within from 2021 October to mid-January 2022.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.