STX Price Forecast: Bullish Momentum as Price Targets $0.84

Stacks (STX) has increased by 9% on Tuesday after a previous 10% gain as Bitcoin (BTC) surpassed $88,000. On-chain metrics indicate rising bullish sentiment, with significant increases in Open Interest and trading volume. The technical outlook targets a potential rally to $0.84. Investors must remain cautious of potential corrections back to $0.68.

Stacks (STX) has witnessed impressive gains, with a 9% increase on Tuesday following a previous 10% rise. This surge comes amid positive on-chain data, signalling bullish sentiment, and indicating a potential continuation of the rally targeting the $0.84 level. Currently, STX is trading around $0.76.

The recent breakout above the descending trendline represents a significant shift, with STX closing above the 50-day Exponential Moving Average (EMA) at $0.68. Should the upward momentum persist, STX could advance to its next resistance level at $0.84, supported by the current upward reading in the Relative Strength Index (RSI), which is nearing the overbought territory.

On-chain metrics further reinforce this bullish outlook, as Open Interest in STX has experienced a substantial rise from $33.28 million to $62.13 million, suggesting increased market participation. Additionally, trading volume has surged dramatically from $34.8 million to $241.40 million on Tuesday, marking the highest activity this year.

Despite the optimistic indicators, caution is warranted. Should the RSI begin to decline below 70, it may signal weakening momentum. Furthermore, if there is any setback, STX might retrace towards the support level at the 50-day EMA of $0.68. Investors are advised to carry out their own research before making any investment decisions regarding STX.

Overall, while STX displays strong prospects for growth, the inherent risks of investing should be acknowledged, ensuring careful consideration of market dynamics before entering trades. No individual compensation was received for this article, and the authors express no ownership in STX or any related assets at the time of writing.