- STX outperformed every other cryptocurrency in the top 50 and rose above the $1 threshold.
- The token was overbought, but the support at $0.83 could prevent it from plunging.
- If BTC reclaims $42,000, STX’s potential retracement may not last long.
The price of Stacks (STX) increased by 40.64% in the last 24 hours as the broader market rally continued to hold. STX’s price was $1.20 at the time of writing, CoinMarketCap data revealed. This value represents a 90.53% hike in the last seven days, making it the 43rd most valuable cryptocurrency per market cap and the best performer out of the top 50.
STX Price Analysis
An assessment of STX’s technical side showed that there is a strong wave of bullish sentiment. This optimism was also followed by a surge in volatility, based on indications from the Bollinger Bands (BB).
While there was support at $0.76 and $0.83, STX risked ruining the gains of current holders. This is because the upper band of the BB touched the STX price at $1.19. A position of this nature is considered overbought.
So, there is a possibility of STX dropping below $1. That is, if profit-taking becomes rampant. However, if bulls can defend the $0.83 support, the potential downward pressure can be stopped.
Traders should also watch out for BTC’s price action. Should Bitcoin lose hold of $41,000, STX may also drop below the $0.83 support. However, a bullish validation may occur for STX if BTC reclaims $42,000.
If the latter is the case, the bullish momentum displayed by the Moving Average Convergence Divergence (MACD) may remain. Irrespective of the move STX makes, traders should be wary about opening long positions at its current price.
For long-term holders, this rise may not offer a perfect entry. So, it could be better to wait for a retraction. Meanwhile, the Stacks team gave an update on some developments a few days ago.
According to the project, there could be high demand for Bitcoin L2s going into the halving period. So, it mentioned that it was working on the Nakamoto upgrade before the April 2024 Bitcoin halving.
The Nakamoto upgrade is billed to happen by Q1 2024, and it aims to boost security on the Stacks network and aid faster block generation.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
