The cryptocurrency Stacks (STX) recently experienced a remarkable change, with its price reversing after reaching a multi-month low of $0.4412. Investors took advantage of the opportunity to “buy the dip,” resulting in a sustained uptrend for STX over the past few days. As a result, STX is currently trading at $0.7916, marking a significant increase of 29% from this month’s lowest level.
Potential Catalysts For STX
Two main factors are driving the Stacks price rise. First, Blackrock’s decision to file for a Bitcoin exchange-traded fund (ETF) with the US Securities and Exchange Commission sparked positive sentiment. However, uncertainty remains regarding the acceptance of iShares Bitcoin Trust, as Coinbase is set to serve as the custodian of the coins. Additionally, the ongoing conflict between Coinbase and the SEC adds to the regulatory uncertainty surrounding the situation.
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In addition, the SEC’s lawsuit against major exchanges Binance and Coinbase is expected to benefit Bitcoin, as both regulatory agencies recognize Bitcoin as a commodity rather than a security. Because of this, many investors in alternative cryptocurrencies may shift their attention to the perceived safety of Bitcoin. Stacks, which are closely tied to the Bitcoin ecosystem and enable the development of decentralized applications (dApps), benefit from this changing investor sentiment.
The expanding Stacks ecosystem is another important factor contributing to the STX price increase. Bitflow Finance, a decentralized finance (DeFi) protocol, recently introduced an sBTC/sBTC stableswap pool, enabling seamless token swaps. This development improves the use and adoption of Stacks, which ultimately reinforces the positive price performance.
What’s Next For Stacks?
From the point of view of technical analysis, Stacks shows good signals. The daily chart reveals the formation of a bullish falling wedge pattern, indicating a potential trend reversal. STX also broke above the 25-day exponential moving average and is currently testing the 50-day MA.
In addition, the collapse of the key resistance level of $0.5281, the lowest point in March, further strengthened the bullish sentiment. As buyers look to the next resistance point at $0.90, a potential 9% rise from current levels, Stacks continues to attract attention.
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Stacks price is $0.79 at press time, showing a change of -2.10% in the last 24 hours. Recent price action leaves Stacks’ market capitalization at $1,101,401,654.52. Remarkably, Stacks has shown an impressive 277.22% change since the beginning of the year, which shows its strong growth potential.
STX serves as the native token on the Stacks blockchain, which operates as a layer 2 blockchain network that uses the security of the Bitcoin blockchain for transaction settlement. With its unique position and strong ecosystem, Stacks continues to capture the attention of investors and developers.
Featured image from iStock.com and charts from Tradingview and Coingecko.com