The ongoing correction phase in Stacks coin price has been strictly responding to two technical levels, specifically a downsloping resistance trendline and a horizontal support level of $0.67. The coin price has bounced back twice from both aforementioned levels, which accentuates the traders’ respect for these levels; therefore, it also has a significant impact on the near-future move.
Supply pressures at the overhead resistance trendline of the Stacks price could continue to resonate in a narrow range for a few more sessions. The 20- and 50-day Exponential Moving Average (EMA) offers additional resistance against rising Stacks prices. The intraday trading volume in Stacks is $331.7 million, indicating a 696% gain.
The Stacks coin price resonates between the downsloping trendline and $0.67 support, creating a narrow range in the daily chart for over a month. Moreover, the mentioned levels converging to a single point indicate the altcoin’s price action will narrow before giving an actual decisive breakout.
Today, the Stacks coin price is trading at the $0.76 mark and shows a long-wick rejection near the overhead trendline. This rejection reflects that traders are aggressively selling at this trendline, indicating the correction remains intact.
If the supply momentum were to rise, a daily candle closing below the $0.67 support would offer sellers a new resistance level to pressurize the price for further downfall. The potential downfall may tumble the price 22% down to hit $0.525. On the other hand, a breakout above the downsloping trendline could signal the end of the correction phase and trigger a fresh recovery rally.
Technical indicators such as the Relative Strength Index (RSI) indicate that as the Stacks price retests $0.67, the daily RSI slope rises, projecting the increasing buying pressure at the support level. Additionally, the coin price trading above the 100- and 200-day EMAs keeps the overall market sentiment bullish.
In conclusion, the Stacks coin price intraday levels are as follows: Spot rate is at $0.759 with a bullish trend, medium volatility, resistance levels at $0.775 and $0.86, and support levels at $0.67 and $0.525. This analysis demonstrates that despite some potentially precarious price situations, the market remains optimistic, but caution should be exercised.
Please note that the presented content may include personal opinions from the author, and the market condition should always be taken into consideration. Do your market research before investing in cryptocurrencies, as the author or publication does not hold any responsibility for personal financial loss.
Source: Coingape
