STX Technical Analysis: Bearish Trendline Delays Breakout Rally 

Key technical points:

Past Performance of STX

As we see in the STX/USD price chart, the downfall starting from April depreciated the STX prices by 67% resulting in a bottom formation at the psychological mark of $0.50. The abrupt ending of the downfall due to the consolidation in May brings a challenge to the resistance trendline.

Source- Tradingview

STX Technical Analysis

The sideways trend in STX price ranging between $0.50 and $0.61 levels shows a failed double bottom pattern as the resistance trendline knocks out the bullish reversal. Moreover, the higher price rejection in the previous daily candles warns of a downtrend continuation below the $0.50 mark. The falling trend in the crucial daily EMAs maintains a bearish alignment showcasing a solid bearish trend in action. However, the trendline breakout can result in a rally retesting the 50-day EMA which can provide another breakout entry.

The RSI slope shows a diagonal rally with increasing bullish influence with the support of the 14-day SMA showing a bullish divergence in the price action. However, the slope struggling to surpass the halfway line can result in a bearish retracement. The MACD and signal lines reflect an uptrend in motion but the diminishing spread increases the likelihood of a bearish spread. Moreover, the decreasing intensity of the MACD histograms adds points to the bearish crossover likelihood. In a nutshell, STX technical analysis shows a high possibility of a breakout rally shortly.

Upcoming Trend

A drop below the support level of $0.50 will intensify the bearish spiral and catalyze the fall to the next support level at $0.45. However, the bullish breakout from the resistance trendline could trigger a rally in STX prices that could reach $61.

Resistance Levels: $0.61 and $0.79

Support Levels: $0.50 and $0.45