Can $11 Million Inflow Trigger A Breakout In Stacks (STX) Price?

Stacks (STX) price has experienced more modest gains as compared to other altcoins rising nearly 45% from the August lows. In one week, STX made a strong comeback from the lows, indicating better days are around the corner. 

Furthermore, the on-chain data reveals a significant development in the Open Interest data, indicating increased investor confidence. At the time of writing, stacks was exchanging hands at $1.54, indicating a 1.5% intraday growth.

Despite all this, the long term trend favors the bearish side. As observed on the daily chart, the crypto has been in a correction phase since the beginning of April. The price dropped over 60% since then, forming an interesting pattern on the chart.

Stacks Price Open Interest Data Analysis

As per the data obtained from an on-chain analytics website app.santiment.net, the open interest data displayed a 30% growth. The total OI contracts have jumped from $30 Million to 41 Million in just two sessions, indicating a 30% growth. 

Moreover, the transaction volume grew nearly 46% to $99.2 Million withing a day. The rise in the transaction volume indicates heightened demand. Also, the volume to market cap ratio was 4.4%, reflecting low volatility.

Stacks has a live market capitalization of $2.28 Billion and ranks 32nd in the cryptoverse. Out of a total supply of 1.81 Billion STX tokens, nearly 1.48 Billion tokens are currently in circulation. 

Can Stacks Break out of a Correction Phase in August?

Despite the efforts in the recent sessions, STX is hovering in a long term bearish trend. The daily chart shows the formation of a declining parallel channel pattern with the price sliding between the lower and upper boundaries of the channel. 

Moreover, STX surpassed the 20 day EMA, reflecting strength in the short term. However, the long term trend remains bearish, below the 200 day EMA. As of now, the price lags nearly 17% in comparison to the 200 day EMA. 

On the higher side, STX needs to surpass the 50 and 200 day EMAs to claim a bullish reversal on the chart. However, until the price crosses the 200 day EMA, it may remain in a bearish zone. It might head downwards if the selling pressure increases.

On the higher side, the $1.9 level may act as a crucial resistance level. On the lower side, $1.2 level may emerge as a crucial support for Fantom.

Stacks price rose nearly 45% from its August lows, showing a strong comeback in a week. Moreover, Open interest grew 30%, from $30 Million to $41 Million, indicating high demand. The transaction volume has surged by 46% to $99 Million a day.  

Despite short-term strength above the 20-day EMA, Stacks remains in a long-term bearish trend below the 200-day EMA, lagging by 17%. At press time, the price was in a declining parallel channel. For a bullish reversal, it needs to surpass the 50 and 200-day EMAs.