STX Technical Analysis: Quick Reversal Traps STX Buyers Under $0.60

Key technical points:

Past Performance of STX

As mentioned in our previous analysis, STX prices break under the crucial support level of $0.80, resulting in a downfall to the psychological mark of $0.50. The correction started after the sharp increase in selling pressure at the resistance trendline. However, the recent recovery in the market after the LUNA incident brings a relief rally in Stacks market value. 

Source-Tradingview

STX Technical Analysis 

The relief rally in the STX prices came with a falling trend in trading volume, reflecting an overall fall in buying pressure. Thus, the sellers at $0.60 quickly overtook the relief rally and brought an 8% fall. 

Over the last few months, the increased selling pressure has aligned the SMAs in a descending formation reflecting a solid underlying bearishness. The falling trend after the alignment increases the number of dynamic resistances buyers must overcome for a prolonged uptrend.

Following a dramatic reversal from the oversold zone, the RSI slope exceeds its 14-day SMA but fails to sustain the uptrend resulting in a fall. Additionally, the DI lines of the DMI indicator represent a bearish trend, but the sharp reversal in the opposite direction lights the possibility of a trend reversal crossover. 

In short, the STX technical analysis depicts a formidable selling pressure curbing the reversal attempt by bulls.

Upcoming Trend

Assuming the lower high formation continues, the STX prices will breach the psychological milestone of $0.50 and reach the $0.45 mark. However, buyers withholding the psychological barrier will start to reverse the trend to get $0.80, surpassing the $0.60 mark of at least beginning a consolidation range.

Support Levels: $0.50 and $0.45

Resistance Levels: $0.60 and $0.80