Stacks (STX) Price Prediction 2023: Will STX Recover After 26% Drop in 7 Days?

Stacks (STX) was trading at $1.71, at the time of writing, following a 11.73% decline over the last 24 hours and a 26.06% drop in just 7 days.

STX Price Analysis: Stacks Token Drops Below $1.80, Key Support Level In Focus

The cryptocurrency market experienced a downturn on Thursday, with most major tokens trading in the red. Stacks (STX) was also affected by this decline, dropping below the crucial support level of $1.80.

STX Price Chart - Critical Support Zone

STX price pulled back sharply from its mid-channel resistance around $4.50, leading to a 27.35% decline during this correction. The price dropped towards its support within a long-term ascending channel, as highlighted by AMBCrypto earlier.

Now, at the lower boundary of this channel, lies a critical support zone between $1.70 and $1.80. This level has acted as strong support throughout STX's uptrend, as shown in the chart below.

Moreover, popular crypto analyst Ali Martinez highlighted this level as a possible buying opportunity, especially for long-term investors, considering the token's recent correction.

STX 1 Hour Price Chart (Source: TradingView)

STX Price Analysis - Key Fib Levels, Resistance Targets

Fib Retracement levels also show this support zone, with the 78.6% Fib level (dotted blue line) aligning with the lower boundary of the ascending channel around $1.75.

Meanwhile, the upper boundary of the channel points towards a potential price target near $10 if the support at $1.70 – $1.80 holds.

STX price pulled back from the 23.6% Fib level (dotted green line) at $4.48, completing a full Fib Retracement cycle from the recent swing low at $2.92.

STX Price Chart - Support, Resistance Levels

STX price dropped lower after facing resistance at the 38.2% Fib level (continuous green line) at $4.05. The token's price then fell below the 50% Fib level (continuous yellow line) at $3.68.

Afterward, STX price found support at the 61.8% Fib level (continuous blue line) at $3.28 before continuing its upward movement.

However, the token's price failed to clear the 76.4% Fib level (continuous purple line) at $4.32, leading to a rejection and a pullback.

On the downside, immediate support is present at the 78.6% Fib level (dotted blue line) at $2.92. Further down, the 85% Fib level (continuous orange line) at $2.73 could act as support.

On the other hand, resistance above could be found at the 61.8% Fib level (continuous blue line) at $3.28, followed by the 50% Fib level (continuous yellow line) at $3.68.

Relative Strength Index (RSI) on the 1-hour chart indicates a downtrend, with the indicator line below the 50-neutral level. However, the RSI is flattening out, suggesting that selling pressure may be easing.

Awesome Oscillator (AO) also shows bearish momentum, with red bars on the indicator. However, the histogram is declining, indicating that selling pressure may be easing.

For a bullish price reversal, green bars on the Awesome Oscillator are needed, along with a breakout above lower-high resistance levels.