The STX price action gradually narrows within a symmetrical triangle pattern. The potential reversal from its support trendline may spike the altcoin to $1.45 resistance. However, a breakout from either of the converging trend lines is needed to trigger a directional move.
Key points:
- The flattish 50-day SMA reflects a range-bound rally.
- The STX price rebounded from the $1.11 support.
- The intraday trading volume in the STX is $185.4 Million, indicating a 1065% gain.
Source- Tradingview
The STX price remains trapped in the symmetrical triangle pattern formed after the remarkable fall of 40% in January 2022. The triangle showcases an equally strong trendline on either side, with the support trend trendline ready to initiate the bull cycle.
In the recent bear cycle, the coin price declined 26% in a week before creating a double bottom pattern on the support trendline. However, today the bulls failed to provide a bullish breakout to this pattern as the daily candle shows a long-wick formation reflecting a bullish takeback.
For STX holders: The support trendline and the $1 psychological barrier provide a launchpad for bullish reversals. However, a bullish reversal and the double bottom breakout will reach the resistance trendline or surpass the $1.40 mark. Finally, the bull run will bring a bullish breakout in the best-case scenario, potentially to $1.60.
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However, the fallout from the bottom support will result in a fall to $0.80, accounting for a 20% discount.
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Technical indicator
The 200-day EMA aligned with the descending trendline provides a dynamic resistance to STX price. Moreover, the 50-day EMA located near the double bottom pattern neckline($1.3) provides an additional defense level for sellers.
The MACD indicator shows the fast and slow lines are nearing a bullish crossover. This buy signal would attract more buyers to the market.
- Resistance levels- $1.37, and $1.6
- Support levels- $1.1 and $1
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