Reversal Inside the Eyes of the $0.3 Wedge Pattern Support

STX

Posted 21 minutes ago

Stacks (STX) price is one of the few cryptocurrencies that has been positive in the last 24 hours. Since last week, the altcoin has rallied 40% as it rebounded from the support at $0.3 and retested the immediate resistance at $0.46. However, today the coin chart showed a failed attempt to break above the mentioned resistance, suggesting a bearish reversal.

Key points:

  • The STX chart is showing a reversal possibility from the descending resistance trend line.
  • Bear cycle in wedge pattern cause 30% drop
  • The intraday trading volume on the Stacks coin is $241.5 million, indicating a gain of 341.5%.

STX/USDT ChartFont- business view

The STX/USDT technical chart represents the six-month downtrend within a falling wedge pattern. Multiple tests of these descending trend lines indicate that currency traders strictly respond to the pattern levels. Furthermore, the drop recently plunged the altcoin to a low of $0.305 on June 14.

However, amid improving sentiment in the crypto market, STX price rebounded from the mentioned support and surged 47% to its current price of $0.45. Furthermore, despite a massive inflow and high volume of activity on June 27, coin buyers failed to break above the downtrend line.

This resistance trendline of this long-evolving pattern reversed price with a long-tailed rejection, accentuating the high supply pressure. Therefore, if the selling pressure persists, the price of STX would drop by 30% and challenge the $0.3 support again.

Regardless, interested buyers should wait for the pattern to break to hope for a genuine rally.

technical indicator

RSI indicator: Similar to STX price action, the slope of the daily RSI showed a sizeable rally, but struggled to break above the midline (50%), indicating a lack of commitment to the upside.

MA: The 50 day EMA helped the sellers to reverse the altcoin from the resistance trend line. However, traders would get additional confirmation if the price of the coin failed to sustain above the recently recovered 20-day EMA.

  • Resistance levels: $0.5 and $0.63
  • Support Levels: $0.37 and $0.3

I have been working in journalism for 5 years. I follow Blockchain and Cryptocurrency since last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech to me at brian (at) coingape.com

The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication bears no responsibility for your personal financial loss.

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