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The cryptocurrency Stax (STX) has experienced a remarkable turnaround recently, with its price bouncing back after hitting a multi-month low of $0.4412. Investors have taken advantage of the opportunity to “buy on the dip”, resulting in a steady uptrend in STX over the past few days. As a result, STX is now trading at $0.7916, a significant 29% increase from this month’s low.
Possible catalyst for STX
There are two primary reasons for the jump in the price of Stax. First, the decision by BlackRock to file for a bitcoin exchange-traded fund (ETF) with the US Securities and Exchange Commission has sparked positive sentiment. However, uncertainties remain regarding its acceptance iShares Bitcoin Trust, as Coinbase is expected to act as the custodian of the coins. Furthermore, the ongoing conflict between Coinbase and the SEC has added to the regulatory uncertainty surrounding the situation.
Related reading material: Bitcoin Soars Over 18% in Seven Days: What Happened When It Happened in the Past?
Furthermore, the SEC 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. As a result, many investors in alternative cryptocurrencies may turn their attention to the perceived security of bitcoin. Stack, which is closely tied to bitcoin’s ecosystem and enables the development of decentralized applications (dApps), will benefit from this changing investor sentiment.
The expanding Stack ecosystem is another important factor contributing to the increase in STX price. Bitflow Finance, a decentralized finance (DeFi) protocol, recently introduced an SBTC/SBTC StableSwap pool, which enables seamless token swaps. This growth increases the utility and adoption of Stacks, ultimately enhancing its positive price performance.
What’s next for Stack?
From a technical analysis point of view, the stack is showing promising signs. The daily chart reveals a bullish falling wedge pattern formation, indicating a possible trend reversal. STX also broke above the 25-day exponential moving average and is currently testing the 50-day MA.
Moreover, the breakout of the key resistance level at $0.5281, which was the lowest point in March, further strengthened the bullish sentiment. Stax continues to attract attention as buyers set their sights on the next resistance point at $0.90, a potential upside of 9% from current levels.
Related reading material: Mask Foundation Sends 2.5 Million Tokens To Exchanges, Big Downfall Coming?
At press time, Stack is priced at $0.79, representing a change of -2.10% over the past 24 hours. The recent price action has left the market capitalization of Stax at $1,101,401,654.52. Notably, Stax has displayed an impressive 277.22% change since the beginning of the year, which shows its strong growth potential.
STX serves as the native token of the Stack blockchain, which operates as a Layer 2 blockchain network leveraging the security of the Bitcoin blockchain for transaction settlement. With its unique positioning and strong ecosystem, StAX continues to attract the attention of investors and developers.
Featured image from iStock.com and charts from TradingView and Coingecko.com
