Stacks price shows 15% upside potential, tops, before a possible nosedive

Stacks (STX) price is trading with a bullish bias, recording a steady uptrend as part of a recovery rally. However, this optimism could run out of steam soon amid increasing volatility.

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Stacks price coils up for a correction

Stacks (STX) price has a bit of upside potential left. It could climb 15% at most before a correction, with the position of the Relative Strength Index (RSI) at 69 shows that STX could soon be overbought once it crosses above the 70 level. This could precipitate a correction.

The Awesome Oscillator (AO) is still in the positive territory, showing the bulls maintain a presence in the STX market. Meanwhile, evidence of increasing volatility can be seen in the Bollinger Bands widening, increasing the risk in the STX market.

With this outlook, early profit-taking, spooked by volatility-related risk could see Stacks price face a rejection from the upper band of the Bollinger Bands, pulling south to break below the midline (yellow band) of the indicator at $0.6227. In the dire case, the slump could extend for the price to lose the support offered by the lower band, which almost confluences with the ascending trendline at $0.4713.

On the flipside, increased buying pressure could see Stacks price breach the upper band of the Bollinger Band indicator at $0.7741 before a possible extension to the $0.8860 resistance level, which could mark the take profit level for the less conservative traders. However, the more conservative ones should consider placing their take profits slightly lower.

If Stacks price breaks and closes above the $0.8860, it would not only invalidate the expected bearish thesis, but also clear the path for a continuation of the trend, potentially going as high as the supply zone extending from $1.0638 to $1.1568. A break and close above the midline of this order block at $1.1123 would confirm the continuation of the uptrend.