Stacks Price Analysis:Will STX succeed in fleeing the 20-day EMA?

• STX price tries to escape the multiple EMA which acts as a hurdle.
• Bulls showed intent to rescue the gains in the last sessions.

Stacks price showed a downside momentum in the past trading session and remained in the narrow range amid the downtrend. The price is near the multiple EMA, which tightens the ongoing bullish candle not to leave anywhere, but bulls try to go over it, and sellers were trying to break below the immediate low of $0.6000. 

The ongoing trend peaks in no decisive movements are based on leading indicators and suggest a different narrow-range trade in the following sessions.

In the past sessions, STX showed a head and shoulders pattern and broke the lower trendline support of $0.8600. Afterward, the price continued to decline in the form of lower lows sequences.

Now, the price is at the moment where bulls cannot gain extensive momentum due to the mighty bears who continued to make short positions, and because of the broad selling in the crypto market, sellers have an extra advantage of that.

When writing, Stacks trades at $0.6510 with an intraday decline of 0.60%, showing a neutral move. Moreover, the pair of STX/BTC is at 0.0000247BTC, and the intraday trading volume increased by 28.50% to $289.06 million. The day high of STX is $0.6788, and the day low is $0.6104 showing a reversal. The market cap of STX is $598.65  Million.

Will STX retest $0.7000?

On the daily charts, STX is near the make-or-break level, where if bulls continue to extend, follow-on buying will lead to a trend reversal and rise in action, where bulls will gain traction and head towards the immediate resistance of $0.7000. On the other hand, if sellers showed their presence and succeeded in breaking below $0.6400, then it will forcefully go towards $0.6000.

As per the Fib level, STX jumped from the mark of 23.6% level, and now it is facing a 38.2% level of $0.6500, which, if it escapes, the following mark of $0.7000 will be retested.

What Traditional Indicator Says?

On the 4-hour charts, STX recovered from the 200-day EMA lows and indicated a bounce. Moreover, the trajectory swings show that bulls did not leave after the breakdown and held the gains, which could stay above the support mark of $0.6000, the demand zone.

The RSI rose towards the overbought zone and showed a positive crossover which suggests a positive outlook.

The MACD indicator showed a bullish crossover and continued to form green bars on the histogram.

Conclusion:

STX price is near the resistance mark, and buyers have kept their eyes on the levels. Stacks will show a decisive move in the following sessions.

Technical levels:

Major support: $0.6000

Major resistance: $0.7000

Disclaimer:

The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.