Stacks (STX) Price Prediction: Bullish Pattern Points to $1 Breakout

Stacks (STX) Surges 45% – Is a $1 Breakout Ahead or Just a Relief Rally?

Stacks (STX) has had a huge rally, rallying an impressive 45% since the April 7th downtick, leading most of the wider cryptocurrency market. The recent price action shall be seen because of ecosystem expansion, better fundamentals, and increased presence on key exchanges.

Unpacking the Momentum Behind Stacks (STX) Bullish Rally

Certain important factors were behind STX’s excellent performance. Upon recent disclosure, it was revealed by the Stacks team that the token is now listed on all top 15 cryptocurrency exchanges, some even offering staking options. In consequence, this has increased the utility of STX and its exposure to a slightly different class of investors.

Further, the Stacks ecosystem is gaining more and more traction. Having been ranked as one of the top 10 fastest-growing ecosystems for 2024, Stacks now aims still higher: it is set on making it to the top five.

With both price and project fundamentals gaining strength, the big question to ask is: How far can STX go from here?

STX Technical Analysis: Stacks Rebound from Critical Support Level

After an extensive bull run off $3.84, which was the all-time high in April 2024, STX has been in recovery mode. The slide continued after the December high until Price found a decent base at around $0.47 this month, just below the important range around $0.50. 

This $0.50 level has been a good support/resistance flip since 2021, and it held once again in this case. A bullish engulfing candlestick indicated the bounce off this support, echoing the buyers’ strength coming in.

That said, the evidence that supports a confirmed trend reversal is not strong. The MACD on the weekly is close to crossing over into the bullish direction but hasn’t crossed over yet, the RSI has just barely bounced and is still below 50. These indicators may indicate something bullish, but clearly, they do not support us walking in with confidence.

STX Short-Term Forecast: Bullish Chart Pattern Suggests Upside Potential

The daily chart depicts a more positive picture of STX for the short window. Technical analysis suggests the completion of the five-wave down move from the ATH, which formed a bullish ending diagonal pattern, traditionally signalling a possible resumption of an uptrend.

The RSI and MACD working on the daily time frame both show bullish divergences, adding merit to the bullish argument.

Upon breaking near-term resistance at $0.75, the next key levels to watch are $1.05 and $1.45.

STX Price Analysis: Relief Rally Warning for Long-Term Investors

Despite the short-term rally being in favour of bulls, the longer-term weekly chart still shows bears. The earlier cycle of bulls that had been in force from November 2022 seems to have gone through a complete five-wave structure of an uptrend. The fall now looks to be an integral part of a larger five-wave corrective structure rather than a mere short correction.

Wave three of this fall has, in fact, extended much farther than what is expected to be the sight of an A-B-C correction, suggesting the existence of a long-drawn bearish structure. Presumably, after touching a local high near $1, another leg down could follow. 

Final Thoughts

Stacks byzantine in the preceding weeks with brute force occasions propitious for the ecosystem and its wider exchange availability. Short-term markers favour further advances, potentially heading for $1 or above; however, the bigger trend, in fact, suggests that such rally might only be short-lived.

Whether this is the onset of a long-term bull run or the just a relief bounce before dropping once again, all STX traders and investors should be on alarms and ready for volatility in the weeks ahead.