Traders must be aware as STX bounces back strongly
STX broke out past its resistance of $0.314 in February. Traders must be aware as STX bounces back strongly After almost a year-long downtrend from January 2022 to February 2023.
KEY TAKEAWAYS
- Bitcoin Ordinals may have contributed to the price hike of Stacks STX.
- Despite the bullish trend, the metrics indicate a bearish turn may be near.
Since then Stacks STX has seen an impressive gain of 236%. However, in contrast to the previous swing high at $1.31 the gains would amount to 315%.
The Positive sentiment around Bitcoin Ordinals may have been the driving force behind this upward trend. But the investors must be aware of the TVL Total Value Locked and be cautious. An increase in the TVL along with the price may indicate an increase in platform adoption. While on the other hand, a decrease in TVL indicates a loss of users from the platform. This can ultimately negatively affect the price.
But charts show a bullish sentiment.
According to the daily timeframe, the trend for STX remained bullish despite a drop from $1.25 to $0.91. The price has been on a coaster of higher lows and higher highs since January, indicating an uptrend. However, the traders can expect the price to test the liquidity pool at $1.25-$1.3. Also a possible reversal around the $1.35 zone. Moreover, a bearish trend is at $1.5, where traders may consider taking profits.
Nonetheless, There has been a decrease in staking at the platform over the past month. Not only that the number of daily active users has also decreased. This could potentially be an indication of a decrease in demand for the token, which may lead to a drop in its price. Furthermore, If the price drops below $0.91, the daily bias would turn bearish, indicating a possible end to the bullish run.
Early birds suffer the consequences
There has been a recent uptrend in the spot CVD on the 15-minute timeframe. This indicates a strong demand after a retest of the $0.91 level. Anyhow the funding rate has also been negative over the past few days.
Also, despite a bullish trend, the Open interest has not gone up past Monday’s highs. Additionally, liquidation data suggests that some short positions have been liquidated.