Stacks (STX) Rockets 26% Higher In A Single Week: The Factors At Play

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The price of Stacks (STX) experienced a sustained rebound, driven by a prevailing sentiment of positivity within the cryptocurrency sector. STX had a significant increase, reaching a peak of $0.680, which represents the highest value observed since July 14th.

Stacks is a layer-1 blockchain solution aiming to enable smart contracts and decentralized applications on the Bitcoin network without altering its core features, like security and stability.

It operates through the Stacks token (STX), which powers smart contract execution, transaction processing, and asset registration on the Stacks 2.0 blockchain. This enhances Bitcoin’s capabilities without requiring a fork or changes to its original blockchain.

Stacks (STX) Racks Up 26% Gain

At the time of writing, STX was trading at $0.640, up 1.5% in the last 24 hours, and registering a solid 26% increase in the last seven days, data from crypto market tracker Coingecko shows.

STX price action today. Source: Coingecko

The surge in STX is attributed to the prevailing optimism among investors on the potential acceptance of a spot Bitcoin ETF by the US Securities and Exchange Commission.

In a recent statement, Gary Gensler affirmed that the agency is currently engaged in an ongoing examination of the various proposals for exchange-traded funds (ETFs).

It is widely anticipated by analysts that the commission is likely to provide approval to proposals put up by established ETF companies such as Blackrock, Invesco, Infidelity and Franklin Templeton.

STXUSD trading at $0.636 on the weekend chart on TradingView.com

This expectation is influenced by their considerable knowledge and experience in the exchange-traded fund (ETF) sector. Given its previous setbacks in lawsuits against Grayscale and Ripple Labs, the SEC also hopes to head off any prospective legal challenges.

Meanwhile, Peter Schiff tweeted this week that the price of bitcoin might rise ahead of the ETF approval, only to fall afterward. Buying rumors and then selling them as news is a common practice.

Analysts’ Outlook For STX

A significant number of cryptocurrency traders utilizing platform X exhibit a favorable perspective towards STX.

DaanCrypto expresses a positive outlook regarding the possibility of a substantial increase in the STX price, contingent upon its ability to surpass the resistance level of $0.52.

Nevertheless, the author cautions that a negative trajectory might potentially emerge in the event that the price descends below the threshold of $0.42.

Crypto Tony holds a positive outlook for the cryptocurrency, but his approach differs from the previous trader. He emphasizes a bullish ascending triangle pattern for the altcoin instead of placing the same emphasis on horizontal long-term levels.

This indicates his expectation for potential upward price movement, as ascending triangles are typically seen as bullish patterns with the potential for a breakout to higher price levels. This analysis showcases the diversity of trading strategies and technical indicators in the cryptocurrency market.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Cute Wallpapers



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