Comparison between the movement of Tfuel and STX:
In my previous article we have already seen that the Tfuel also gave similar signals before making the big move of more than 1200%. The priceline of Theta fuel was moving in an and before making the big move the price action did not hit the support of the channel and the was also showing less interest of the traders at the support of the channel. Finally the priceline broke out the resistance with a powerful . Same as like above the price action of Bockstack also stopped hitting the support of the channel and finally broke out the resistance with a powerful .
Why the priceline did not retest the resistance of 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 more 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 . Therefore the price action re-tested the resistance of this recent rather to re-test the resistance of . In the 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 very strong support of all the moving averages.
The formation of 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 and other . 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 on the long term. But if the price action will form higher lows then the pattern will be changed to rather than .
After breaking out the resistance the price action is showing very positive gesture move up. But if the priceline of STX coin will confirm the pattern then it can be little bit critical because this pattern is considered as a reversal pattern among the traders community. Therefore keeping eye on the further move of the price action is very important.