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Stacks (STX) was able to reach a daily high of $0.6999, but has since seen its price drop 1.59% according to CoinMarketCap. As a result, the altcoin was trading at $0.6875. With this negative daily performance, STX’s price found itself in a precarious situation at press time. If the sell pressure continues, the crypto’s medium-term trend could reverse from bullish to bearish.
From a technical standpoint, the price of STX was resting on the 50-day EMA line after it dropped below the shorter 9-day and 20-day EMA lines over the past week. Bulls were attempting to keep the altcoin’s price above the the 50-day EMA line, which was evident by the wick that was present underneath today’s daily candle at press time.
Furthermore, the crypto’s price was resting on the crucial support level at $0.6573 as well. Should STX drop below this level in the next 48 hours, then it may be at risk of falling to the next key support at $0.6199.
On the other hand, if STX is able to print a new higher low today by closing today’s trading session above the positive trend line, then it could result in the positive price movement seen over the past few weeks continuing. In this scenario, STX may look to climb to the next major resistance level $0.7542 in the coming week.
Investors and traders will want to keep an eye on the previously-mentioned 9, 20, and 50 EMA lines on the altcoin’s daily chart, as the technical indicators were closing in on each other. If the 9-day EMA line crosses below the 20-day EMA in the next few days, then a bearish flag will be triggered which will signal that STX has entered into a short-term bearish trend.
If both the 9 and 20 EMA lines on STX’s daily chart cross below the 50-day EMA line in the coming days then the crypto’s positive momentum over the past few weeks may come to an end. Should this happen, the crypto’s trend will most likely change from bullish to bearish – potentially bringing its price down to $0.5733 in the coming few weeks.
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