The Stacks (STX) cryptocurrency underwent a minor price correction after growing more than 20% during the past week, and our technical readings that the current price-point of STX may represent a suitable market entry point for purchase.

4-hour time frame

STXUSD - 4 Hour Time Frame

As seen in the chart, STX has been forming very clear and precise bull market structures for quite some time now. Currently, the price is testing the Order Block (OB) which represents a crucial area for the next bullish impulsive move to emerge from.

If STX fails to climb in this area, it may do so at one of the three major candle shadow levels, namely at the marked 0.25, 0.5 and 0.75 levels.

The correction phase in this case is forming bearish SUB-structures and so it will be imperative that they turn bullish.

In case the price does not use even one of the mentioned levels, buying positions will no longer be valid and the price will have room for a deeper correction.

Weekly time frame

STXUSD - Weekly Time Frame

The weekly time frame, presents a different perspective. During December of 2023, STX closed above a higher high on the weekly timeframe and so a correction can be expected, based on market structure theory.

Yet, a price break below the higher low on the 4 hour time frame is crucial for this correction to take place.

Since different time frames suggest different price behaviors, it is best advised, as always, to keep updated with market revelations and consider tightening risks should STX falls into a deep bearish correction.