Stacks (STX) $1 Target Within Striking Distance as Price Creates Yet Another High

Key Takeaways

• Stacks (STX) broke out from a descending wedge pattern.
• The STX price moved above the $0.77 horizontal resistance.
• Can STX sustain its increase and break out above $1?

Stacks (STX) has quietly outpaced most of the crypto market over the past week, climbing 43% while Bitcoin (BTC) gained just 10%.

It’s been pushing higher with momentum after breaking out of a bullish setup.

STX is closing in on a key resistance near $1, a level it hasn’t touched since January. The question is whether this rally still has legs.

Let’s break down the chart and see what’s next.

STX Price Breaks Out

After peaking at $3.01 in December 2024, STX spent months pulling back, eventually forming a classic descending wedge pattern, often seen as a bullish reversal setup.

That pattern took shape starting in February, and the trend finally shifted on April 7, when STX bounced off the wedge’s support line.

A confirmed breakout followed on April 21.

That move likely marks the end of a five-wave corrective decline (red), setting the stage for a potential trend reversal.

As expected, the breakout has led to renewed momentum, with STX now charging toward the psychological $1 mark.

Technical indicators also predicted the breakout and have turned bullish since.

The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) created bullish divergences (orange) before the rally.

The indicators are still increasing, and neither has generated any bearish divergences that would predict a reversal.

If STX can decisively break above $1, the next resistance to watch sits near $1.38, aligning with the 0.382 Fibonacci retracement level.

Local Top Close?

While the daily chart still leans bullish, the six-hour time frame suggests that STX could be nearing a short-term top.

The wave structure points to the early stages of a new five-wave upward trend.

However, even within an uptrend, local pullbacks are common, and technical signals are starting to suggest one might be close.

The RSI and MACD show bearish divergences, hinting at slowing momentum as STX approaches the $1 mark.

The sub-wave count within the third wave also supports this view.

Although wave three could still stretch a bit higher, potentially testing $1, a brief correction looks likely.

If that happens, STX may pull back toward the $0.78 area, right around the 0.382 Fibonacci level and a previous resistance zone, before possibly making another run higher.

Correction Before Rally

The STX price ended its lengthy correction with a descending wedge breakout on April 21.

Stacks cleared the $0.78 resistance area and is quickly approaching the $1 resistance.

However, the price may reach a local top soon, leading to a short-term decline toward $0.80 before new highs.