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Stacks (STX) Eyes $1 After Impressive 45% Rally – Relief or Reversal?
Stacks (STX) has been on a significant streak, rising 45% since its April 7 trough and leading much of the wider crypto market. The recent price action seems to be driven by a mix of ecosystem expansion, improved fundamentals, and rising exposure on key exchanges.
Momentum Behind the Surge
Several key factors have contributed to STX’s strong performance. The Stacks team recently revealed that the token is now listed on all of the top 15 cryptocurrency exchanges, some of which even offer staking options. This has not only enhanced STX’s utility but also boosted its exposure to new investors.
In addition, the Stacks ecosystem continues to build traction. After being recognized as one of the top 10 fastest-growing ecosystems of 2024, Stacks is aiming even higher, setting its sights on breaking into the top five.
With both price and project fundamentals gaining strength, the big question remains: how much higher can STX climb?
Technical Picture: STX Price Rebounds Off Key Support
STX has been in recovery mode following a sharp drop from its all-time high of $3.84 in April 2024. After setting a new high in December, the price continued to slide until it found solid footing at $0.47 earlier this month, just above the crucial $0.50 support zone.
This $0.50 level has historically acted as a strong support/resistance flip since 2021, and once again, it held firm. STX rebounded with a bullish engulfing candlestick, signaling strong buyer interest at this level.
Still, signs of a confirmed trend reversal remain tentative. The MACD on the weekly chart is nearing a bullish crossover but hasn’t triggered it yet, while the RSI has bounced slightly but remains under the 50 mark. These indicators suggest bullish momentum is building, but caution is warranted.
Short-Term Outlook: Bullish Setup in Play
The daily chart paints a more optimistic picture for the short term. Technical analysis indicates that the five-wave decline from the all-time high has probably finished, creating a bullish ending diagonal pattern—a traditional indication of possible trend reversal.
Both the RSI and MACD on the daily time frame are indicating bullish divergences, further lending weight to the argument for upwards movement.
If STX can breach near-term resistance of $0.75, the next significant targets are at $1.05 and $1.45.
Long-Term Caution: Is This a Relief Rally?
Despite the positive short-term signals, the longer-term weekly chart is still bearish. The previous cycle of bulls that started in November 2022 seems to have finished a five-wave structure of an uptrend. The fall now seems part of a deeper five-wave correction move instead of a short correction.
Notably, wave three of the current decline has extended well beyond the typical length seen in an A-B-C correction, suggesting a more prolonged bearish structure is in play. This indicates that after reaching a local high near $1, another leg down could follow.
Final Thoughts
Stacks (STX) has been incredible in recent weeks, fueled by favorable developments in its ecosystem and wider exchange availability. Although short-term markers favor further advances, potentially leading the price to $1 or higher, the larger trend indicates that this rally may be fleeting.
Whether this is the start of a long-term uptrend or only a relief bounce ahead of yet another decline, STX traders and investors would do well to stay vigilant and ready for volatility in the weeks to come.
