Stacks [STX] finds its floor, but $0.40 is the real test

Stacks [STX] has rallied an incredible 20.8% in the past 24 hours. It was only up 5.8% in the past week, and its price charts revealed that the recent bounce came after a deep retracement.

STX, like Bitcoin [BTC] and major altcoins, also experienced a rally at the start of 2026.

AMBCrypto reported that this move almost broke a multi-month downtrend, falling just short of the former support level, now turned resistance, at $0.412.

The rejection at this resistance came alongside a wider market sell-off as Bitcoin descended below $84.5k and went as low as $74,600 recently.

The $566 million market cap altcoin has strong short-term momentum, but Stacks buyers have an uphill battle ahead.

Is Stacks trading within a consolidation phase?

Source: STX/USDT on TradingView

The technical indicators showed that STX bears were firmly in control. The DMI showed a strong downtrend in progress on the 1-day timeframe.

The CMF was negative, but not below -0.05, the threshold that analysts use to understand if the capital outflows are significant.

The price action also showed a notable tussle between bears and bulls. The sellers had been dominant since August, but the early January rally shifted this briefly.

Though STX was trading below $0.325 once more, the sustained downtrend has stalled. This idea gained more credibility when you consider the reaction from the $0.237 support level.

What’s next for STX?

Source: STX/USDT on TradingView

The past month’s price action revealed a range formation in play. It extended from $0.238 to $0.40, with the midpoint at $0.32. At the time of writing, STX was headed toward this resistance.

Beyond $0.32, the $0.327-$0.335 supply zone was also a formidable threat to the bulls.

Traders’ call to action – Wait to buy

Source: CoinGlass

The liquidation map agreed with the supply zones identified earlier. The $0.34 and $0.40 were also magnetic zones to the price. STX may see a bearish reaction from either level, especially at the month-long range’s high.

Therefore, traders can wait for an STX acceptance beyond $0.34 to buy. Until then, patience is needed.

Final Thoughts

• Stacks bulls tried and failed to break the multi-month downtrend early in January.
• The month-long range formation that the current price bounce could continue.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.