Stacks (STX) experienced a significant surge in December and January, contrasting with Bitcoin‘s (BTC) price decline due to strong selling pressure. This volatility resulted in STX retracting some of its recent gains.
A fresh influx of demand in the past 24 hours has led to a price increase, with sentiment favoring buyers as Stacks aims for the $2.45 level. Analysts suggest that STX’s daily chart shows a strong bullish market structure, supported by a Relative Strength Index (RSI) above the neutral 50 mark since mid-November, indicating upward momentum.
The uptrend accelerated after flipping the $0.69 resistance level in December, with On-Balance Volume (OBV) climbing significantly, signaling widespread buying pressure. This trend suggests the potential for continued growth.
Recently, STX breached a two-week resistance zone, which could present a good buying opportunity upon retest. However, the Cumulative Volume Delta (CVD) began to decline on January 3, with open interest showing a downtrend until January 7, coinciding with a drop in STX prices.
The CVD then climbed sharply, and Open Interest (OI) increased by over $30 million, pushing the cryptocurrency’s price to $2. Experts caution that a fall to $1.7 is possible, while the $2.12 and $2.44 levels may resist price increases due to their significance as mid-range and high-range levels in STX’s trading range from October 2021 to mid-January 2022.