Stacks Testing $1.75 Support Amid 26% Weekly Drop

Stacks (STX) was trading at $1.71, reflecting an 11.73% decline in the last 24 hours and a 26.06% drop over 7 days. With a circulating supply of 1.5 billion STX, its market capitalization was $2.57 billion.

Trading volume in the last 24 hours was $439 million, illustrating substantial activity during this price drop.

The recent downturn in STX’s price aligns with a broader market decline, pushing the token towards its critical support level within a long-term ascending channel.

Ascending Channel Indicates Long-term Bullish Trend

According to AMBCrypto’s analysis, Stacks is trading within a defined ascending channel, signaling a broader bullish trend despite recent declines. As of press time, the price was nearing the lower boundary of this channel, between $1.70 and $1.80, which has consistently acted as strong support.

The upper boundary of the channel points to a potential target near $10, suggesting room for future price recovery if support holds. Analyst Ali Martinez noted that this phase could present a buying opportunity, particularly for long-term investors.

Recent Correction and Key Levels

Stacks experienced a sharp pullback from its mid-channel resistance near $4.50, declining by 27.35%. This decline approached the support area but such pullbacks are common in long-term uptrends, offering accumulation opportunities.

The support at $1.75–$1.78 will be critical in determining STX’s next move. If this level holds, it may lead to a rebound, with initial resistance targets at $2.40–$2.50 and stronger resistance near $2.80–$3.00. However, a breakdown below $1.75 could trigger further declines, with next major support levels at $1.50 and $1.40.

Momentum Indicators Signal Mixed Trends

At press time, the Awesome Oscillator (AO) displayed red bars, indicating bearish momentum. However, a declining histogram suggests that selling pressure might be easing. For a bullish reversal, green bars on the AO and a breakout above lower-high resistance levels are needed.

Traders should monitor the $1.75 zone for signs of a rebound or further breakdown. Sustained movement above this level could push prices toward the $2.00–$2.40 range in the near term.

Outlook and Key Metrics to Watch

As STX trades near its support, investors are watching key levels to identify the next trend. Immediate support stands at $1.75, with major resistance zones at $2.40 and $2.80. Should the lower boundary of the ascending channel be breached, downside targets of $1.50 or lower may materialize.

This steep correction fits into a larger growth pattern for Stacks, indicating potential recovery opportunities if support levels hold.