Stacks (STX) Rally Hangs on This Key Support; Bearish Signals Point to Upcoming Dip for Bittensor (TAO) Price

In Rekt Capital's latest newsletter, the analyst discusses the recent developments regarding STX and its breakout from a macro pennant.

Technical analysis firm Rekt Capital has provided the latest updates on the price movements of Stacks (STX) and Bittensor (TAO), highlighting key resistance levels and potential upcoming price trends.

STX Price Rally Hangs on Crucial Support Level

According to Rekt Capital, STX has broken out from a macro pennant formation, indicating a potential bullish trend. However, the analysis focuses on the retesting process, which is occurring within a sideways channel.

STX price needs to maintain its position within this channel, which serves as a critical parameter for a successful post-breakout retest from the pennant.

Continuing support above the top of the black pennant, which coincides with the bottom of the orange channel, is crucial for confirming a breakout over time. For trend continuation, Stacks (STX) would need to close above the orange channel on a weekly basis.

Bittensor Price Faces Upcoming Dip as Bearish Signals Persist

The analysis also provides an update on TAO, which was covered extensively in previous weeks. To avoid redundancy, the analysis suggests reviewing last week’s analysis for a detailed examination.

This current update shifts the focus to the Daily timeframe, where a strong bearish divergence can be observed. The downtrend in the RSI is also indicating resistance.

Due to this ongoing downtrend, a bullish price reversal cannot be entertained at this time. Additionally, the Weekly timeframe is showing weakness, as TAO is on the verge of losing its macro range.

Recently, TAO dipped below the Range Low of $521 and has now closed below this level, showing signs of potentially flipping it into new resistance.

For TAO to remain within its range, a weekly close above the Range Low is necessary. Furthermore, the analysis stresses that TAO must invalidate the daily RSI downtrend, which currently shows no signs of happening.

Until these conditions are met, TAO appears to be increasingly likely to break down from its established range.