Popular cryptocurrency Stacks (STX) has seen significant gains this past month, jumping 36% in October and now trading around $0.65. According to renowned analyst Rekt Capital, this price increase comes after STX broke out above a key channel top resistance level.
In his recent newsletter, Rekt Capital notes that STX spent almost two weeks retesting this previous channel resistance as new support after the initial breakout. This successful retest confirmed the upside breakout and enabled further continuation to the top of the range near $0.65.
Overall, STX has rallied an impressive +70% since Rekt Capital’s initial analysis. However, after facing rejection at the range high resistance around $0.65, he believes STX could dip back down to retest support around $0.54.
“After rejecting at the Range High resistance (black), STX could now dip into the orange dashed support for a retest,” writes Rekt Capital. “Historically, a successful retest there has preceded upside back to the Range High resistance for a challenge at breaking out from the range altogether.”
He notes these retests tend to be volatile, often with downside wicking below the key support level. However, a successful retest of support could signal another leg up for STX to revisit range highs.
In summary, STX has seen a great month in October but may face some short-term pullbacks according to Rekt Capital. However, the overall technical picture remains bullish, especially if STX can hold key support levels on any retracement.
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