Breaking a key resistance indicates the Stacks network is likely on the track of recovery

STX/USDT chart and technical analysis

The price of STX/USDT has dropped for the last couple of weeks and lost almost 40% since then. However, recently the price broke the 1.50 key resistance level and created a strong support around the same price, which indicates the return of the bullish trend.

The market structure has also turned bullish as the price has formed a bullish head and shoulder pattern which indicates a bullish reversal. The price is also making higher highs on smaller time frames.

I am expecting the price will retrace back to the 1.50 for a correction before making new gains. I would recommend the 1.50 level for long entry as this level will act as a major support level now and my recommended target for this trade is the 1.90 resistance level.

Stacks network fundamental analysis

Fundamentally, there are no significant events that could impact the price of STX/USDT substantially. The price will likely follow the price action as it has been doing since last week.

Stacks to Tether trade idea takeaways

• STX/USDT is likely back in the bullish trend as the price breaks key resistance level
• The price of STX/USDT is likely to reach the 1.90 resistance level in the coming days.
• Multiple take-profit levels have been added to secure profit along the way.
• The risk-to-reward ratio on this trade is 1:3.2.
• The entry and stoploss prices have been placed at secure levels with the least probability of getting hit.
• Good luck!

The post Breaking a key resistance indicates the Stacks network is likely on the track of recovery appeared first on Invezz