2023-5-4 12:00 |
The Stacks (STX) price has fallen since reaching a yearly high in March but is showing signs that the correction might come to an end.
Even though the price trades in a middle of a long-term range, the wave count suggests that the correction is nearly complete. As a result, a sizeable bounce may follow soon.
Stacks Price Falls After Rejection From Range HighThe price of STX has risen since the start of the year, as indicated by the weekly chart. In January, it broke through a resistance line that had been in place since the all-time high.
Breakouts from such long-term structures usually indicate that the previous correction has ended. After the breakout, the price increased by nearly 400% in 63 days, leading to a new yearly high of $1.31 in March.
However, the price has fallen since, validating the resistance area at an average price of $1.15. It is now trading in the middle of a range between $0.50 and $1.15.
STX/USDT Weekly Chart. Source: TradingViewThe weekly Relative Strength Index (RSI) indicator gives an undetermined reading.
When evaluating market conditions, traders use the RSI as a momentum indicator to determine whether a market is overbought or oversold and whether to accumulate or sell an asset.
If the RSI reading is above 50 and the trend is upward, bulls still have an advantage, but if the reading is below 50, the opposite is true. The RSI is above 50 but decreasing, a sign of an undetermined trend.
STX Price Prediction: Is Another High on the Horizon?The technical analysis from the daily time frame shows that the STX price could be nearing the end of its short-term correction.
Firstly, the price seems to have completed wave four of a five-wave upward movement (black) that began in November 2022. The move ended at the 0.618 Fib retracement support level.
Technical analysts employ the Elliott Wave theory as a means to identify recurring long-term price patterns and investor psychology, which helps them determine the direction of a trend.
While Fibonacci retracement levels suggest that after a considerable price movement in one direction, the price will retrace or go back partially to a previous price level before continuing in its original direction.
These two indicators suggest that the price will resume its increase toward a new yearly high. The first potential target for the future price high is at $1.70, created by the 1.61 external Fib retracement of the most recent drop.
STX/USDT Daily Chart. Source: TradingViewDespite these readings, a decrease below the wave one high (red line) at $0.38 will invalidate this bullish STX price forecast. In that case, a decrease toward $0.22 will follow.
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The post Is Stacks (STX) Price Poised for an Uptrend? These Indicators Provide Hope appeared first on BeInCrypto.
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