Stacks (STX) is demonstrating signs of forming a classic 'double bottom' pattern on its daily price chart, which may indicate changes in market trend.
Formation of Double Bottom
On the Stacks (STX) chart, a classic 'double bottom' is observed. This technical formation could suggest a trend reversal, signaling a possible shift from bearish to bullish market. Two troughs are appearing around the $0.70 mark, with a key resistance level forming just below $1.10.
A breakout above this level could confirm the pattern and signal a strong upward move. Analysts typically use the height between the bottom and the resistance to estimate the next price target, in this case, aiming around $2.80.
Increase in Market Capitalization
In the past month, STX's market capitalization rose from under $900 million to a peak above $1.4 billion. This growth highlights significant inflows of capital and renewed investor interest in the asset. Currently, the market cap stands at $1.33 billion, slightly lower due to a recent 5.62% price pullback.
Despite the dip, the asset continues to trade in an upward trajectory. The increase in market cap aligns with the rising price trend and may indicate broader accumulation by market participants.
Key Resistance and Prospects
The resistance around $1.10 is pivotal—if STX can break past this level on high volume, it will confirm the double bottom pattern and lead to higher price targets. Conversely, further resistance at this stage may trigger a temporary consolidation period in price. Depending on the overall market situation, this could be seen by traders as either a healthy pause or a possible rejection.
Stacks (STX) is showing clear signs of a potential breakout to new price levels. Monitoring market dynamics and key resistance levels will be crucial for analysts and traders in the coming days.
