Hey friends hope you are well and welcome to the new update on Blockstack coin. In my previous article, we have discussed that the STX coin was moving in a parallel channel and we also had received different bullish signals giving clear indications that the price action may breakout the resistance of the channel very soon. The moon phases indicator was showing the full moon was appeared at high altitude and the directional movement indicator also gave bullish signals as +DI crossed up –DI and the volume profile indicator was showing very low interest of the traders at the support of this channel.
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Comparison between the movement of Tfuel and STX:
In my previous article, we have already seen that Tfuel also gave similar bullish signals before making the big bullish move of more than 1200%. The priceline of Theta fuel was moving in an up channel and before making the big move the price action did not hit the support of the channel and the volume profile was also showing less interest of the traders at the support of the channel. Finally, the priceline broke out the resistance with a powerful bullish divergence. Same as above the price action of Bockstack also stopped hitting the support of the channel and finally broke out the resistance with a powerful bullish divergence.
Why the priceline did not retest the resistance of the parallel channel? :
After breaking out the channel there was a strong possibility that the price action of STX will move down to re-test the resistance of the channel as support before the next rally. But if we watch on the chart then the price action retraced back but without retesting the resistance of the channel the price action moved up. But if we take a closer look at the chart. Then it can be clearly observed that after mid of May 2020 the price action of STX started its movement within an up channel. Therefore the price action re-tested the resistance of this recent up channel rather re-test the resistance of the parallel channel. In meanwhile the price action has also broken out all the simple moving averages with the time period of 25, 50, 100, and 200 and now having the very strong support of all the moving averages.
The formation of a new channel:
Now I would like to show you the new move of the priceline of STX coin. After breaking out from the parallel and up channels now the price action of Blockstack has formed another up channel. If we have few more touches at the resistance and the support of this new channel then the price action will confirm its movement within this pattern in the long term. But if the price action will form higher lows then the pattern will be changed to a rising wedge rather than up channel.
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Conclusion:
After breaking out the resistance the price action is showing very positive gestures to move up. But if the priceline of STX coin will confirm the rising wedge pattern then it can be a little bit critical because this pattern is considered as a bearish reversal pattern among the trader's community. Therefore keeping an eye on the further movement of the price action is very important.
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