In the last bull cycle, it made an all-time high of nearly $3 but was sent back to $0.20, a 93% depreciation until December 29, 2022. Since the start of 2023, it has made a significant recovery of 560%, reaching $1.30 in March, and was in a downtrend since, going back to $0.43 until September.
A new uptrend started with the price coming to $1.50 today, surpassing the previous yearly high. As it did on a 25% daily spike, will it continue rising and moving higher before the end of 2023?
STX’s last low of $0.43 came at a 0.768 Fibonacci retracement of the previous uptrend. This could have been the first bull market correction after the price reached $1.30 in March, especially as the new uptrend started.
From August until October, there was a horizontal range forming as the price consolidated around $0.45 and resulted in a strong bullish momentum uptrend. The price increased by 240%, measured to its current high of just below $1.50, and is still on an upward trajectory.
Judging from the wave structure, this last uptrend is near completion, with the next significant horizontal resistance being around $1.60. However, this would only be the end of this lower-degree uptrend.
Zooming to the daily chart, we can see that the current uptrend target corresponds with the 1 Fibonacci extension level, meaning it would come to the same length as the previous uptrend.
If we saw the first two waves from the start of the year until $0.43, the current uptrend is wave 3. At their typical and optimal length, they come as a 1.618 Fibonacci extension and could indicate that the price is going straight through the $1.60 resistance and onward to $2.24.
It is crucial to see what happens at the $1.60 resistance, as that would dictate future expectations. If the price makes a downturn, it could mean that it ended its larger uptrend and is now headed to its next higher low; in this case, we would be looking at the target of $0.85.
Alternatively, if it continues moving upward, the next target would be at $2.24, where the 1.618 Fibonacci level is.
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