- Volume indicators pointed to a bullish conviction.
- Intermediate resistance was identified before the May highs.
Stacks [STX] was another altcoin that broke out of a three-month-old range formation. Like Bitcoin [BTC] at the higher timeframes it has been in a downtrend since April.
Recent bullish sentiment and demand have fueled steady gains.
A recent report highlighted that STX was likely to retest the range highs, but a breakout would depend on the OBV reaching a new local high. The price retest has come out and the OBV has also reached new highs.
Inspiring performance from the bulls
Source: STX/USDT on TradingView
In terms of volume, the bulls have put their best foot forward. In addition to the OBV making a new local high, the CMF stood at +0.24. This is a level that the indicator has not reached since January 2023.
A CMF value above +0.05 is enough to signal significant capital inflow to the market. Together, the volume indicators showed a high probability of a range breakout for Stacks.
The daily RSI was also solidly bullish, and the bearish breaker block at the psychological $2 level was about to be beaten.
The price action and indicators were healthily bullish. The next target would be $2.4, the May-June resistance.
The heatmap of the order book provides clues about support/resistance
MobChart’s order book heatmap mainly highlights the strongest support/resistance levels nearby. Furthermore, the build-up of limit orders at certain levels also causes prices to move towards them.
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For example, a week ago the $2 level had almost $1 million in limit orders. These were swept and the price started a small decline to $1.84 a few hours later.
Likewise, the buildup of orders at $2.2 could pull Stacks prices closer ahead of a minor retracement.
Disclaimer: The information presented does not constitute financial advice, investment advice, trading advice or any other form of advice and is solely the opinion of the writer
Credit : ambcrypto.com
