After a market correction that saw Stacks [STX] retrace to $1.89, the altcoin has seen strong gains over the past day, hitting a high of $2.62 after a 19.63% gain.
The stock has since retreated slightly. As of this writing, Stacks is trading at $2.53. This marks a gain of 11.63% over the past day.
According to Coinglass, STX’s trading volume surged 202.25% to $534.69 million during the same period.
Prior to the daily chart gains, STX fell on the weekly chart, down 1.79%. However, the altcoin gained 29.42% on the monthly chart.
Despite the recent rise, STX is still about 34.3% lower than its high of $384.
With new demand for Stacks emerging, the ensuing question is whether this altcoin is about to experience a more sustained upward trend.
What does the STX chart indicate?
According to AMBCrypto's analysis, Stacks is experiencing strong upward momentum as buying pressure increases.
As STX closes and forms a double line crossover, this upward momentum is confirmed. Thus, the relative strength index of the altcoin has soared from 47 to 56, while its MA has dropped from 64 to 61.
This rise indicates that buyers are entering the market, while the sellers' dominance is gradually weakening.
This phenomenon is further confirmed as the Directional Movement Index's +DI continues to rise while the -DI declines. STX's +DI has risen to 24.86, while the -DI has dropped to 25.
This trend indicates that STX is about to see a bullish crossover. A crossover starting from here will confirm the strength of the upward trend.
Looking further, this bullish sentiment is further reflected among long holders. According to Coinglass, long positions dominate the market.
It is noteworthy that the long/short ratio shows that, over a 4-hour period, longs are dominant, accounting for 54.69% of the total. This dominance indicates that most investors are betting on price increases.
Finally, the positive funding rates aggregated by exchanges further support the demand for long positions.
This suggests that investors are building positions and are willing to pay a premium for these positions when altcoins decline.
In short, as buyers enter the market, Stacks is currently experiencing strong upward momentum.
With the appearance of bullish crossover signals, STX's price chart may see more upward movements. Therefore, if current conditions hold and the bullish crossover is confirmed, Stacks will reclaim the resistance level of $2.7.
Breaking this level could see the altcoin reach $3.04. Subsequently, if sellers enter the market, STX may drop to $2.4.