Stacks Spikes 25% Making a New Yearly High — Will STX Keep Rising?

Key Takeaways

• STX made a new yearly high just below $1.50.
• The next resistance is at $1.60, but there is no sign of momentum slowing down.
• Interaction with this resistance will dictate the future outlook.

Stack has been one of the most promising Bitcoin layers with smart contracts, enabling decentralized applications on the most secure blockchain with STX as a transaction-settling asset. 

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 Price Analysis 

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. 

Disclaimer

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.