Disclaimer: The information presented does not constitute financial, investment, trading or any other advice and is solely the opinion of the author
Stacks [STX] saw heightened volatility in late February. After that, its value fluctuated and chalked up a rising channel. It rose from $0.2871 in mid-February to more than $1,200 in the second half of March – a rally of more than 300%.
But the $1,200 price cap provided retracement before the bulls found footing at the channel’s lower border of $0.8000.
Read Stacks [STX] Price prediction 2022-23
The US Consumer Price Index (CPI) data, due to be released on April 12, may cause some volatility before cooling off afterwards. Ergo, STX can sustain price volatility before final Bitcoin-based price action is decided [BTC] movement.
Can STX overcome its obstacles?
Source: STX/USDT on TradingView
On its upward path, STX faces obstacles at $1.0178, the mid-range level and the bearish order block at $1.2491. At the time of writing, the price action had reached the first hurdle of $1.0178 and showed signs that sellers were close as evidenced by the red candle.
If the hurdle continues, STX may retest the channel’s lower limit near $0.8369 before a likely rebound. The pullback retest and confirmed continuation of the uptrend could lead STX to zoom into the $1.1442 mid-level and overcome the $1.0178 hurdle.
STX could also overcome the $1.0178 hurdle without retesting the lower limit if BTC surges sharply above $30K. A close above the mid-range at $1.1442 could lead bulls to try to bypass the $1.2491 and retest the upper bound at $1.48.
Contrary to this assumption, sellers could trigger a bearish breakout, especially if BTC drops below $30K. The prior $0.5894 support could halt the plunge in the event of a downswing following a bearish breakout.
Meanwhile, after rising from the lower range, the RSI retreated to the neutral line – buying pressure increased but then eased. Similarly, the OBV has risen slightly over the past few days, indicating higher demand for STX over the same period.
Weighted sentiment improved strongly
Source: Sentiment
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Weighted sentiment pulled out of the negative territory and rose sharply on the positive side. It shows improved investor confidence and upbeat sentiment after STX recovered from the channel’s lower boundary.
The network also recorded improved NFT sales performance since the start of the month. This could further increase the traction of the network.
However, sellers had marginal leverage according to the longs/shorts ratio on the exchange. As such, the market can move in either direction, which is why investors should monitor BTC’s price action before taking any action.
Source: Coinglass
This post STX recovers from lower range level – Will recovery be sustainable?
was published first on https://ambcrypto.com/stx-rebounds-from-lower-range-level-will-recovery-be-sustainable/
