STX Retraces Back to Support
STX is retracing after failing to break above the $1.00 resistance; let’s see what comes now!
What is Stacks (STX)? Stacks is an open-source network that enables smart contracts and decentralized applications (dApps) to be built on the Bitcoin network.
The token is used to pay transaction fees and as a reward for miners who process transactions on the network. It was launched in January 2018 and has since gained popularity among investors and traders.
STX Price Analysis
STX recently broke above the $0.50 support level but was stopped by the $1.00 resistance. It currently appears to be retracing back to the $0.50 support level. This movement is typical in the cryptocurrency market, where prices tend to move in waves of support and resistance.
During this rally, the Relative Strength Index (RSI) has seen its most overbought level ever.
Therefore, a retracement was inevitable, and the price is now consolidating. The most likely scenario now is that we will see a ranging market, as that is what usually happens to STX following a very overbought RSI.
The RSI is a momentum indicator that measures the trend's strength and can signal when a market is overbought or oversold.
Potential Future Movements
After the ranging market, if Bitcoin becomes bullish once again, we will probably see STX break above the $1.00 resistance level this time and head towards the next one, around $1.80.
However, if Bitcoin experiences a bearish trend, STX may return to its support levels.
Bottom Line: STX has recently broken above its support level but is currently retracing back to it. Following the overbought RSI, we will probably see a ranging market. After that, if Bitcoin becomes bullish again, we can expect STX to break above the $1.00 resistance level and head towards the next one, around $1.80.
