The cryptocurrency market is experiencing a bullish surge, with both Bitcoin and Ethereum gaining over 13% in the last week. This positive trend has led to several altcoins showing promising signs of an upside movement — and Stacks (STX) stands out among them. 📈
STX is currently witnessing a 7% weekly gain, but what’s more intriguing is its technical chart pattern that suggests a potential bullish breakout in the near future.
On the daily chart, STX has carved out a falling wedge pattern — a reversal setup often seen as a positive signal at the end of a prolonged downtrend.
During a recent correction, STX briefly dipped towards $0.5550 before encountering resistance at the wedge’s upper boundary. However, buying activity stepped in to defend this key support level, sparking a rebound that has now pushed the token closer to testing the wedge’s resistance trendline.
This tightening wedge suggests that momentum is accumulating, with a decisive move expected soon. What will happen next for STX?
If bulls successfully propel STX above the wedge resistance and reclaim the 200-day moving average (MA) at $0.7108, it would likely confirm a bullish breakout. A successful break could pave the way for a rally towards the next key target near $0.8941, aligning with the wedge’s measured move projection.
Alternatively, if the breakout attempt fails, the token might revisit its wedge support before another attempt to rise higher. 🔮
In summary, STX is at a critical juncture — poised for either a bullish breakout or a final retest of its lower support zone.
**Disclaimer:** This article provides informational purposes only and should not be considered financial advice. Always do your own research before investing in cryptocurrencies.