Journalist
Posted:
- Stacks has a bullish outlook in the near term.
- Higher demand is needed to push the token out of the quarterly range formation.
Stacks [STX] has made rapid bullish progress lately. Since the lows on September 16, the token has risen 22%. This followed the bullish market-wide conviction of the past two weeks.
From the second week of September Bitcoin [BTC] has increased from $54k to $64.5k. This 20% move for the king of crypto has rejuvenated the bullish belief, including the sentiment behind Stacks.
STX headed back towards the range highs
Source: STX/USDT on TradingView
Since the first week of July, Stacks has been trading within a range of $1.32 to $1.97. The mid-level of $1,645 has served as both support and resistance over the past three months.
Earlier in September, STX bulls were rejected by the $1,645 resistance before last week’s rally turned this level towards support.
In addition to the range highs, a bearish breaker block was present on the daily chart below the $2 region. This created significant resistance to bullish growth.
A retest of this resistance would not yield a breakthrough in this attempt either.
The daily RSI was bullish and showed upward momentum. The OBV was at a local high that acted as resistance over the past month.
Even if the buyers can break this, there is a local high that the OBV formed in July, which was not enough to break the range.
As things stand now, a large influx of capital is needed to push Stacks prices above $2. Until this happens, traders can use the extremes in the range as their targets.
Social sentiment witnessed a huge positive turnaround
AMBCrypto looked at Santiment’s data and noted that weighted sentiment on social media was positive throughout the month of September. There was a spike last week as prices also broke through mid-range resistance.
Realistic or not, here is the market cap of STX in terms of BTC
This could be due to the news that Stacks was integrating with the Aptos [APT] network, allowing BTC use in the APT network’s decentralized applications (dApps).
The rise in Open Interest also indicated that bullish sentiment was on the rise in recent days.
Disclaimer: The information presented does not constitute financial advice, investment advice, trading advice or any other form of advice and is solely the opinion of the writer