Stacks Rises 22 in a Week But Bulls Should Be Cautious About This

CoinWorld reports:
Short-term bullish outlook for Stacks.
Increased demand is a necessary condition to break the token’s three-month range.
Stacks [STX]
has recently made rapid bullish progress. Since the low on September 16, the token has risen by 22%. This occurred following a generally bullish market over the past two weeks.
Starting from the second week of September,
Bitcoin [BTC]
has increased from $54,000 to $64,500. This 20% movement of the king of cryptocurrencies has revived bullish sentiment, including for Stacks.
STX is once again approaching the range high.
Since the first week of July, Stacks has been trading within the range of $1.32 to $1.97. Over the past three months, the mid-level of $1.645 has served as both a support and resistance level.
At the beginning of September, bullish STX traders were rebuffed at the $1.645 resistance level before flipping this level to support following a rebound in the past week.
In addition to the range high, a bearish breakout block has also emerged below the $2 region on the daily chart. This poses substantial opposition to bullish growth.
A retest of this resistance may not lead to a breakthrough this time.
The daily RSI is bullish and shows upward momentum. Over the past month, the OBV has been at a local high, acting as resistance.
Even if buyers manage to break out of this range, the OBV formed a local high in July that is insufficient to exceed this range.
At present, a significant influx of capital is necessary to drive the Stacks price above $2. Until then, traders can target the range extremes.
Social sentiment has shown considerable positive fluctuations.
AMBCrypto reviewed data from Santiment and noted that weighted sentiment on social media has remained positive throughout September. Last week, the price surged as it also broke through the mid-level resistance.
Whether this is realistic or not,
STX’s BTC market capitalization
terms
could be attributed to reports that Stacks is collaborating with
Aptos [APT]
network, allowing BTC to be used in decentralized applications (dApps) on the APT network.
The increase in open contracts also indicates that bullish sentiment has been rising in recent days.
Disclaimer: The information provided does not constitute financial, investment, trading, or other types of advice and represents only the author’s opinion