STX Technical Analysis: Price Took Crucial Support at $1.33 and Rose High

Ankita  |  Oct 13, 2021

Stacks (STX) is a layer-1 blockchain solution that is designed to bring smart contracts and decentralized applications (DApps) to Bitcoin (BTC). These smart contracts are brought to Bitcoin without changing any of the features that make it so powerful — including its security and stability.

Stacks connects to Bitcoin, enabling you to build apps, smart contracts, and digital assets that are integrated with Bitcoin's security, capital, and network. It was founded in 2013 by founders Ryan Shea and Muneeb Ali.

Past Performance of Stacks

STX started seven days ago with an open at $1.41 on 6th October 2021. There was a strong bull trend across the week. It closed yesterday at the $2.06 level. There was an overall change of 46.1%.

TradingView Chart

STX Technical Analysis

Higher highs and higher lows were seen across the week. The price took crucial support at $1.33 and rose high. The next resistance is expected to be tested at $2.67.

STX is trading right now at $2.373. This is a +15.63% as compared to yesterday’s close. The price is in a rally and traders may be careful about the trend reversal.

OBV is showing that the buying pressure is much higher than the selling pressure. This is a strong bullish signal. Traders may take a long position here.

RSI is showing red flags here. It is well into the overbought region, currently at 79.44. This is a signal that the trend can reverse itself at any time. Traders may take a short position here as soon as any bearish signal is seen. However, sometimes the RSI remains in the overbought region for a long time as well.

MACD, being a lagging indicator, confirms the last week’s uptrend with the fast line crossing above the slow line. The gap between both lines is continuously increasing, which means that this is a bullish signal. Traders may take a long position here. MACD is showing no divergence from the price chart.

Day-Ahead and Tomorrow

Fib retracement shows that the STX price took support at the fib level of $1.36, to start an uptrend. It has broken the fib resistance at $2.19. The next Fibonacci target is at $2.86.

Thus, all the indicators show a strong bullish signal. The traders may take a long position by keeping a target at $2.67. The stop loss can be set at $2.17.

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