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

ambcryptoPublished on 2026-02-04Last updated on 2026-02-04

Abstract

Stacks (STX) surged 20.8% in 24 hours, rebounding from a deep retracement after a failed attempt to break a multi-month downtrend earlier in January. The rally was halted at the $0.412 resistance level amid a broader market sell-off. Currently, STX is trading within a range of $0.238 to $0.40, with the $0.32 midpoint and the $0.327–$0.335 supply zone posing significant resistance. While short-term momentum is strong, technical indicators like the DMI and CMF suggest bears remain in control. Traders are advised to wait for a breakout above $0.34 before considering long positions.

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?

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?

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

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.

Related Questions

QWhat was the percentage increase in Stacks (STX) price in the past 24 hours according to the article?

AStacks (STX) rallied an incredible 20.8% in the past 24 hours.

QWhat is the significant resistance level that STX failed to break in early January?

AThe significant resistance level that STX failed to break was at $0.412, which was a former support level turned resistance.

QBetween which two price levels is STX forming a range formation, as per the article?

ASTX is forming a range formation from $0.238 to $0.40, with the midpoint at $0.32.

QWhat does the article suggest traders should wait for before buying STX?

AThe article suggests traders wait for an STX acceptance beyond the $0.34 level before buying.

QWhat major event in the wider market contributed to the rejection at the $0.412 resistance for STX?

AThe rejection at the $0.412 resistance came alongside a wider market sell-off as Bitcoin descended below $84.5k and went as low as $74,600.

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