STX runs out of bullish momentum: Time to short?

ambcrypto.com:

Stacks’ [STX] was among the best performing cryptocurrencies since the second week of March. However, bullish momentum faded in the last few days and was already giving way to the bears.

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STX may offer a significant opportunity for short sellers, and here’s why. Sell pressure has been swelling up after the token found resistance above the $1.25 price level.

Additionally, STX was overbought after its price spike from the second week of March. This created a psychological sell signal for most buyers, especially those who were already deep in profit.

Source: TradingView

STX extended its pullback by 13% in the last 24 hours at press time. This outcome brought its total pullback to 24.28% from its recent peak to its $1.02 at press time price.

The token may still extend its downside, just by price analysis alone. Its price peak was accompanied by a lower RSI peak as well, creating a bearish price-RSI divergence.

A large enough pullback may trigger more downside. Key support levels to watch out for include the $0.81, $0.71 and $0.60 price levels.

Some on-chain metrics also confirmed the current state of STX demand. For example, its volume dropped substantially between 23 – 24 March, in line with the drop in demand.

Source: Santiment

Its social dominance metric indicated an overall decline during the week as the token fell out of favor with investors. The weighted sentiment metric was at its weekly low at press time after an overall downward trend in the last seven days.

Source: Santiment

STX’s volatility also adopted a downward trajectory this week. and was down to its weekly low at the time of writing.

Although the press time STX sentiment was bearish, there was still some good