The prevailing surge of intense selling pressure in the cryptocurrency market is subsiding as the prices of prominent crypto giants Bitcoin and Ethereum bounce back by 3-4% within the past 24 hours. Additionally, altcoins are also experiencing a surge in momentum, with Stacks (STX), a Bitcoin Layer for smart contracts, making waves as the top gainer with an impressive surge of 14%.
The recent recovery of STX, the native cryptocurrency of the Stacks ecosystem, has sparked increased interest and investment as it approaches a significant support zone. This short-term gain has the potential to serve as a catalyst for the upcoming trading session, and it’s possible that buyers might prevail over the long-term bearish pattern.
STX Price Shows Promising Signs of Recovery from Bearish Pattern
Taking advantage of the previous low of $0.52, buyers have seized the opportunity, which now serves as an immediate support level for the bullish sentiment. Currently, at the time of writing, the STX price is trading at $0.6209, showcasing an impressive overnight gain of 16%. According to data from CoinMarketCap, the trading volume has also experienced a significant surge, increasing by 250% to reach $173.9 million within the last 24 hours.
Currently, the bullish momentum is pushing toward the resistance trendline of the falling wedge pattern. It’s worth noting that buyers may encounter a hurdle at the $0.677 level. An interesting observation is that the Average Directional Index (ADX) has slightly increased from the range of 7 to 10, indicating a growing strength in the recovery process.
At present, the 200-day simple moving average is acting as a crucial demand zone for bullish traders, and they are currently striving to drive the STX price above the 20-day SMA. If the price manages to sustain above both the 20 and 200 SMAs, it could potentially create opportunities for new investments.
Furthermore, the Relative Strength Index (RSI) has formed a double-bottom pattern near the oversold zone. This could signal a shift in buyer sentiment, particularly if the RSI surpasses the 50 range and exhibits a bullish divergence along with a crossover above the moving line. Such developments may prompt buyers to adopt a more aggressive approach.
Also read: KAVA Token Soars 12% Despite Challenging Crypto Market
