Reversal Signs At Crucial Resistance Puts Stacks Coin Price On 20% Downside Risk

Despite an aggressive downfall in the crypto market last week, the Stacks coin price managed to sustain at higher chart levels, indicating the buying pressure is intense. Defying the correction phase in market leaders, Bitcoin and Ethereum, the STX price showed a slow yet steady rally. Furthermore, the 4-hour time frame displayed this price rally as a formation of a rising channel pattern. Here’s how this pattern may influence this altcoin’s future price

Key Points: 

• In theory, the rising channel pattern is a bearish continuation structure that could trigger an aggressive downfall if the coin price breaks below its support trendline
• A golden crossover between the 50-and-200-day EMA could encourage STX prices to continue their ongoing rally for a few more trading sessions.
• The intraday trading volume in the STX is $581 Million, indicating a 151% gain.

Source- Tradingview

The Stacks price has witnessed a massive inflow since the third week of February 2023. As a result, the coin price rallied 200% from the Feb-15th low and reached today’s current price of $0.916.

However, with the increasing bearishness in the crypto market, the aggressive buying sentiment has switched to a slow but steady rally recently, where the prices resonate between two rising trendlines. These trendlines are currently carrying the ongoing uptrend and will continue to do so until the rising channel pattern is intact.

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As of now, the Stacks coin price is trading below the pattern’s resistance trendline and displays the formation of a famous bearish reversal candle pattern called evening star. This bearish pattern indicates a higher possibility of price reversal which could trigger a minor correction in this pattern. 

This potential reversal could tumble the STX price by nearly 20% before reaching the lower support trendline for sufficient support. However, if the selling pressure persists, the breakdown below the support trendline may encourage a prolonged downfall. 

Technical indicator

Relative Strength Index: the daily-RSI slope in overbought territory highlights traders who went too aggressive with the buying activity, and therefore a retracement phase is needed to stabilize it.

EMAs: during the occasional pullbacks, the STX price can receive strong support from the 20-day EMA support.

Stacks Coin Intraday Price Levels

• Spot price: $0.90
• Trend: Bullish
• Volatility: Medium
• Resistance level- $1.05 and $1.22
• Support level- $0.57 and $0.51