- Stacks has a strong bullish outlook for the coming weeks.
- A drop towards $1.7 could present buyers with an opportunity.
Stacks [STX] has recovered strongly in December and January. The last month saw increased volatility after Bitcoin [BTC] faced strong sales pressure that pushed prices back to the lowest point in the range. This allowed STX to regain some of its recent gains.
Over the past 24 hours, a new influx of demand pushed prices higher. Sentiment was also in favor of buyers as Stacks targets the next level at $2.45.
Stacks bulls need to rein in the FOMO and wait
Source: STX/USDT on TradingView
On the one-day chart, STX’s market structure was solidly bullish. The RSI has also been above neutral 50 since mid-November, indicating upward momentum.
The rally surged in December after clearing the $0.69 resistance level.
This caused the OBV to rise by a huge margin, indicating high buying volume. At the time of writing, OBV continued to rise, indicating buying pressure. This suggests that the upward trend is likely to continue.
The area between $1.6 and $1.72 was marked by a cyan box. It represented a resistance zone from the past two weeks that was emphatically broken in the past few hours. Therefore, a retest of this zone would provide a good buying opportunity.
Buying volume and bullish sentiment are gaining momentum again
Source: Coinalyse
On January 3, the CVD spot started to decrease. The Open Interest showed a downward trend from January 5 to 7. STX prices also fell during this period, demonstrating a strong bearish bias in the short term.
In the past two days, all this has taken a turn.
Read stacks’ [STX] Price forecast 2024-25
Spot CVD started to skyrocket and OI is up over $30 million. Prices have also risen to $2. This was a sign that the STX could rise much higher, but don’t rule out the possibility of a dip towards $1.7.
To the north, the $2.12 and $2.44 levels are expected to be an obstacle to price gains. This is because they were the mid and range-high levels of a range in which STX traded from October 2021 to mid-January 2022.
Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.