STX rebounds from lower range level – Will recovery be sustainable?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
Stacks [STX] saw increased volatility at the end of February. Afterward, its value see-sawed and chalked an ascending channel. It appreciated from $0.2871 in mid-February to above $1.200 by the second half of March – an over 300% rally.
But the price ceiling at $1.200 set it into retracement before bulls found steady ground at the channel’s lower boundary of $0.8000.
Read Stacks [STX] Price Prediction 2022-23
The US Consumer Price Index (CPI) data, to be released on 12 April, may trigger some volatility before cooling off afterward. Ergo, STX may sustain price volatility before settling on definite price action based on Bitcoin [BTC] movement.
Can STX overcome its obstacles?
On its upward path, STX faces obstacles at $1.0178, the mid-range level, and the bearish order block at $1.2491. At press time, price action had hit the first hurdle of $1.0178 and showed signs that sellers were nearby, as shown by the red candle.
If the hurdle persists, STX may retest the channel’s lower boundary around $0.8369 before a likely rebound. The pullback retest and confirmed uptrend continuation could set STX to zoom toward the mid-range level of $1.1442 and clear the $1.0178 hurdle.
STX could also overcome the $1.0178 hurdle without retesting the lower boundary if BTC sharply surges beyond $30K. A close above the mid-range of $1.1442 could tip bulls to attempt to bypass the $1.2491 and retest the upper boundary at $1.48.
Contrary to this assumption, sellers could inflict a bearish breakout, especially if BTC drops below $30K. The previous support of $0.5894 could stop the plunge in case of a downswing after a bearish breakout.
Meanwhile, after rising from the lower range, the RSI retreated toward the neutral line – buying pressure increased but waned afterward. Similarly, the OBV rose slightly in the past few days, indicating increased demand for STX in the same period.
Weighted sentiment improved sharply
Is your portfolio green? Check STX Profit Calculator
The weighted sentiment retreated from the negative territory and increased sharply on the positive side. It shows improved investors’ confidence and bullish sentiment after STX recovered from the channel’s lower boundary.
The network also registered improved NFT sales performance since the beginning of the month. This could further boost the network’s traction.
However, sellers had marginal leverage according to the exchange longs/shorts ratio. As such, the market could move in either direction, and therefore, investors should track BTC’s price action before making moves.