Hi, friends hope you are well and welcome to the new update on Blockstack coin. STX has a very big event of mainnet launch on 30 September 2020.
https://www.blockstack.org/p/roadmap
Even though this event was already added on their roadmap but since the announcement is added on different sites especially on coinmarketcal the market cap of Blockstack is increasing every day.
https://coinmarketcal.com/en/coin/blockstack
The effect of announcement on price action:
As I have already mentioned that since the announcement is added on the coinmarketcal the market cap of STX is increasing with that the price of the Blockstack coin is also getting increased. As we can see that the announcement was added on the 12th of May and at that time the priceline was moving at the support of the parallel channel. Then the price action started a bullish rally that was more than 85% and at this time the priceline of STX has reached the resistance of the channel.
I have also placed the volume profile on the complete price action moving within this channel. That is showing the trader’s interest is very weak above the support of the channel. That is a very clear indication that now the price action will not be able to move up to support and the Moon phases indicator is showing the new full moon has appeared at a very high distance above the resistance. That is indicating to upcoming breakout.
The directional movement indicator is showing that the positive directional indicator has crossed up the negative directional indicator and giving the bullish signals.
Tfuel also showed the same signals before the powerful bullish move:
If we watch the Tfuel chart then before the powerful bullish rally we also had received such signals. The volume profile was showing less interest of the traders above the support and for the long time period, before the breakout, the price action did not hit the support and finally broke out the resistance of channel and started more than 1200% rally.
The SMAs have formed alligator mouth:
If we watch the simple moving averages on the daily chart with the time period of 25, 50, 100, and 200 then priceline has crossed up all these simple moving averages. Now we have the order of these moving averages in a sequence that the 25 SMA is above all then we have 50 then 100 and then 200 simple moving average is below all the other simple moving averages. Therefore a complete alligator opened mouth has been formed by the simple moving averages that can lift the prices action more up.
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Conclusion:
At this time the priceline is at the resistance of the channel, therefore we need more volume in order to breakout from this pattern. If the buying volume will be not increased then we can see some correction rally before the next bullish move.
Note: This idea is education purpose only and not intended to be investment advice, please seek a duly licensed professional and do you own research before any investment.