TradeCityPro | STX: Watching for a Breakout in Bitcoin’s L2 Star👋 Welcome to TradeCity Pro!
In this analysis, I want to review the STX coin for you. This coin is one of Bitcoin’s layer-2 projects and, with a market cap of $933 million, ranks 67th on CoinMarketCap.
📅 Daily Time Frame
In the daily time frame, as you can see, this coin has been in a downtrend. Its most recent upward move began after breaking 1.332, and then it dropped within an expanding triangle structure down to the 0.533 area.
🔍 Currently, the main price support is at 0.453, which the price hasn't reached yet, but the 0.533 area is also strong and could mark the end of the downtrend.
✨ If the price bounces from the 0.533 area and starts moving upward, the likelihood of the triangle breaking to the upside increases. Since the price hasn’t reached the triangle’s bottom and could form a higher low, bullish momentum may enter.
📊 Market volume during the last bearish leg was decreasing, and now with supportive candles forming, volume is increasing—which, if it continues, also increases the likelihood of the triangle breaking.
🛒 If this happens, the buy trigger in spot is at 0.731, which, besides being suitable for a spot entry, can also provide a good futures position in lower time frames.
✔️ The RSI oscillator is also near the 50 level, and if it breaks above that and moves up, the price can head toward higher targets.
📉 On the other hand, for short positions, the 0.533 support is very important, and breaking it could justify opening a short. But note that this area is very close to 0.453, so if you're opening a short, be aware it's very risky and the price could reverse at any moment.
❌ If you already hold this coin and are looking for a good stop-loss level, a break and confirmation below 0.453 is appropriate. However, keep in mind that if your stop-loss is triggered and the price moves back above the support area, you should find a new trigger and buy again so you don’t miss the move.
📝 Final Thoughts
This analysis reflects our opinions and is not financial advice.
Share your thoughts in the comments, and don’t forget to share this analysis with your friends! ❤️