Another Resistance Breakout Hints Prolong Rally In Stacks Coin; But There’s a Catch

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While the market leaders Bitcoin and Ethereum show uncertainty in their price action, the Stacks coin price displayed near perpendicular growth in the second half of February 2023. This coin price rallied 188% since the February 15th low and reached a nine-month high of $0.878. However, the daily chart showcasing long-higher price rejection candles indicates signs of exhausted bullish momentum and a higher possibility for a price correction.

Key Points:

Multiple rejection candles indicated the $0.776 as a high supply breakout.
A bullish breakout from the $0.776 resistance set Stacks coin price for a 20% upswing
The intraday trading volume in the STX is $666 Million, indicating a 23% gain

Stacks Coin Source- Tradingview

The recent surge in STX prices could be attributed to the consistent growth of NFT network activity on the Stacks blockchain. Ordinals, a newly launched NFT project based on Bitcoin, may have grabbed the investors’ attention and fueled the explosive growth.

However, in the last four days, the Stacks coin price showed several failed attempts to break a long-coming resistance of $0.776. Moreover, the long-wick rejection attracted to the daily candles indicates the sellers are aggressively defending this level.

Thus, today again as the STX price shows a 19% jump, the prices project a strong breakout from the $0.776 barrier. However, the buyers would need a candle closing above mentioned level to undermine the aggressive selling pressure.

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This breakout will offer buyers additional support to lead the STX price higher and surpass the $0.906 resistance and hit the $1.04 mark.

On a contrary note, this altcoin has witnessed an explosive rally in the short span which could be unhealthy for a sustained uptrend. Thus a correction phase is expected in the near term to stabilize the excessive buying.

Technical Indicator

Relative Strength Index: the daily RSI slope in the overbought territory accentuates the traders who went too far with the buying activity and a correction phase is needed to stabilize it.

EMAs: a golden crossover between the 50-and-200-day EMA slope would encourage traders to prolong the bullish trend.