STX experienced a significant rally today, surging as high as 19.5% after breaking out of a bullish pattern amidst a broader market recovery.
The price of Stacks (STX) reached an intraday high of $0.717 on April 21, with a current trading price of $0.714. The market cap of STX stands at nearly $1.1 billion, with a daily trading volume exceeding $153 million, indicating a notable increase in trading activity.
As a Bitcoin-based protocol, STX’s price movement today closely mirrors that of Bitcoin (BTC), which has seen a 3.4% increase in the past day, reaching $87,573. The overall cryptocurrency market has also seen a 1.1% uptick, reaching almost $2.85 trillion.
The surge in STX’s price was accompanied by a rise in demand among derivative traders, with open interest for STX jumping 31% to over $51 million, according to CoinGlass data.
On the technical analysis front, STX has broken above a falling wedge pattern on the 1-day USDT price chart. This breakout is typically seen as a bullish reversal signal, suggesting a potential price rebound. Analyst Captain Faibik believes this breakout could lead to nearly 100% upside, with a short-term target of $1.40.
Furthermore, STX has moved above its 50-day exponential moving average, indicating improving momentum that may attract more buyers. The Aroon indicators also show strong buying pressure, with Aroon Up at 100% and Aroon Down at 0%.
The Chaikin Money Flow is in positive territory, indicating strengthening capital inflows and buyer dominance. If Bitcoin maintains its positive momentum, the next likely target for STX is the psychological resistance level at $1, with further targets at $1.3-1.4, aligning with previous swing highs and the projected move from the falling wedge breakout.
For those unfamiliar, Stacks is a Bitcoin layer-2 network that enables developers to build smart contracts, DeFi applications, and NFTs while leveraging Bitcoin’s security. The network utilizes a unique consensus mechanism called Proof of Transfer to connect to Bitcoin’s blockchain, enabling advanced functionalities without altering Bitcoin’s core protocol.
STX serves as the native token of the Stacks network, used for processing transactions, powering smart contracts, and earning Bitcoin rewards through token locking.
It’s important to note that this article does not constitute investment advice and is intended for educational purposes only.