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- Stacks tested the $1.75 support during a 26% weekly decline
- The ascending channel pointed to bullish potential, with resistance at $2.40 and a target at $10
Stacks (STX) acted at $1.71, at the time of writing, after dropping 11.73% in the last 24 hours and down 26.06% in just 7 days. With a circulating supply of 1.5 billion STX, the cryptocurrency had a market capitalization of $2.57 billion.
Trading volume in the last 24 hours was $439 million, indicating substantial activity during this price drop.
The recent decline in STX’s price seemed to be in line with a broader market decline. This downturn pushed the token towards its critical support level within a long-term ascending channel.
The ascending channel indicates a long-term bullish trend
According to AMBCrypto’s analysis, Stacks appeared to be trading within a defined rising channel – a sign of a broader bullish trend despite recent declines. At the time of writing, the price was approaching the lower limit of this channel, between $1.70 and $1.80 – a zone that has consistently acted as strong support.
The upper limit of the channel indicated a potential target near $10, indicating room for future price recovery if support holds.
In fact, popular analyst Ali Martinez described this phase as a potential buying opportunity, highlighting the importance of the levels for long-term investors.
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Recent correction and key levels
Stacks pulled back sharply from their mid-channel resistance near $4.50 and fell 27.35% during this correction. While this decline has pushed the price toward support, such pullbacks are common in long-term uptrends and can provide accumulation opportunities.
The support at $1.75 – $1.78 will be crucial in determining the next move for STX. If this level holds, it could lead to a recovery, with initial resistance targets at $2.40 – $2.50 and stronger resistance around $2.80 – $3.00.
However, a breakdown below $1.75 could lead to further declines, with the next major support levels at $1.50 and $1.40.
Source: TradingView
Momentum indicators indicate mixed trends
The Awesome Oscillator (AO) was showing red bars at the time of writing – a sign of bearish momentum. However, a declining histogram indicated that selling pressure may be easing. A bullish reversal would require green bars on the AO along with a break above the lower resistance levels.
Traders should keep a close eye on the $1.75 zone for signs of a recovery or further collapse. A sustained move above this level could push the price towards the $2.00 – $2.40 range in the near term.
Outlook and key metrics to keep an eye on
With STX trading nearing its support, investors are looking at key levels to determine the next trend. The immediate support is at $1.75, with major resistance zones at $2.40 and $2.80. If the lower limit of the ascending channel is breached, downside targets of $1.50 or lower could come into play.
This correction, while steep, fits within a larger growth pattern for Stacks, indicating recovery potential if support levels hold.