STX Technical Analysis: Triangle Traps the Bullish Momentum: Is It Too Early to Enter?
Stacks introduces a brand-new programing language for smart contracts, referred to as Clarity. It was designed to be secure and simple to create by virtue of its clear syntax. The language that is based on smart contracts is also utilized for blockchains like Algorand (ALGO).
Stacks, a layer-1 blockchain technology, is designed to enable smart contracts as well as DApps into Bitcoin. The smart contracts are added to Bitcoin without altering any of the characteristics that make Bitcoin so effective, such as its security and stability.
Let us move ahead to read about Stacks technical analysis.
Past Performance of STX
STX coin price shows an amazing bullish growth from the support trendline of the symmetrical triangle resulting in a 12% jump in the last 24 hours. However, the higher price rejection brings it back within the triangle pattern. Currently, the price action forms a bearish candle near the resistance trendline.
STX Technical Analysis
The recently generated resistance trendline in the STX coin price shows the presence of a solid supply area. However, the recently made bullish engulfing candle shows a rise of buying pressure.
The recent jump in Stack token price drives it higher than all the crucial EMAs (50, 100, and 200) in the daily chart. Moreover, the 100-day EMA moves along with the support trendline.
The RSI indicator at 53% shows the slope retracing to the central line after the recent spike with the coin price. However, the 14-day SMA maintains a sideways momentum reflecting a neutral sentiment.
The MACD indicator shows a sharp increase in the MACD line after the recent crossover with the signal line. Moreover, the bullish histograms start a solid trend indicating a solid bullish momentum.
Therefore, the technical indicators reflect a rise in underlying bullishness projecting a possible bullish breakout of the triangle. However, the higher price rejection evident in the STX price action forecasts a delay in pattern completion.
Upcoming Trend
The STX coin price resonates within a symmetrical triangle in the daily chart and fails to give a bullish breakout despite the recent jump. However, the solid underlying bullishness forecasts a breakout shortly.
Therefore, traders can find buying-the-dip opportunities near the 50-day EMA and the support trendline.
The STX coin price chart suggests the next support levels at $2 and the 200-day EMA below the triangle. And, in case of a bullish breakout, the price can find opposition at $2.60 and $2.90.
At the time of writing, the technical analysis by TradingView reflects an amazing growth in underlying bullish sentiments. That is why it gives a "STRONG BUY" signal for the STX coin.