- 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
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