STX Surges 20% Amid Altcoin Rally: Sustainability in Question
Stacks (STX) has outperformed major altcoins with a 20% price surge, sparking debate over whether the bullish momentum can persist. Market analysts are closely monitoring key resistance levels and on-chain activity to gauge the longevity of this uptrend.
STX technical analysis
Meanwhile, on the 1-day USDT price chart, STX has broken above a falling wedge pattern, defined by two descending and converging trendlines.
In technical analysis, an upside breakout from this pattern is often seen as a bullish reversal signal, indicating the potential for a rebound in price.
According to analyst Captain Faibik, the breakout could trigger nearly 100% upside, with a near-term target of $1.40.
Adding to the bullish outlook, STX has moved above its 50-day exponential moving average, typically a sign of improving momentum that may encourage further buying activity.
Further, the Aroon Up is at 100% while the Aroon Down is at 0%, showing that buying pressure is clearly dominating over any selling right now.
Additionally, the Chaikin Money Flow is in positive territory, signalling that capital inflows are strengthening and buyers are in control.
Provided Bitcoin can sustain its positive momentum, the most likely target for STX appears to be the psychological resistance at $1. A break above this level could push it to target $1.3-1.4, a key resistance zone that aligns with previous swing highs and the projected move from the falling wedge breakout.
For the uninitiated, Stacks is a Bitcoin layer-2 network that allows developers to build smart contracts, DeFi applications, and NFTs while staying anchored to Bitcoin’s security. It uses a unique consensus mechanism called Proof of Transfer to connect its blockchain to Bitcoin, enabling advanced use cases without altering Bitcoin’s core protocol.
STX is the native token of the Stacks network. It is used to process transactions, power smart contracts, and earn Bitcoin rewards through token locking.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
