The cryptocurrency Stax (STX) has seen a spectacular turnaround recently, with prices rebounding after hitting a multi-month low of $0.4412. Investors are seizing an opportunity to “buy on dips” and as a result, STX has been trending upwards continuously over the past few days. As a result, STX is currently trading at $0.7916, up a whopping 29% from its low this month.
A potential catalyst for STX
There are two main reasons why the price of Stax is so high. First, BlackRock’s decision to apply for a Bitcoin Exchange Traded Fund (ETF) to the U.S. Securities and Exchange Commission sparked positive sentiment. However, uncertainty remains regarding acceptance. iShares Bitcoin TrustBecause Coinbase will act as the custodian of the coins. Additionally, the ongoing dispute between Coinbase and the SEC adds even more regulatory uncertainty surrounding the situation.
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Additionally, the SEC lawsuit against major exchanges Binance and Coinbase is expected to benefit Bitcoin as both regulators recognize it as a commodity rather than a security. As a result, many investors in alternative cryptocurrencies may shift their focus to Bitcoin’s perceived safety. Stux, which is closely tied to the Bitcoin ecosystem and enables the development of decentralized applications (dApps), will benefit from this changing investor sentiment.
The expanding stack ecosystem is also a key factor contributing to the rising STX price. Bitflow Finance, a decentralized finance (DeFi) protocol, recently introduced sBTC/sBTC StableSwap Pools to enable seamless token swaps. This development will enhance the stack’s utility and adoption, and ultimately its excellent price performance.
What’s next for the stack?
From a technical analysis point of view, Stax shows promising signals. The daily chart reveals the formation of a bullish descending wedge pattern, indicating a possible trend reversal. The STX has also risen above the 25-day exponential moving average and is currently testing the 50-day moving average.
The bullish sentiment further strengthened as the digital currency broke out of critical resistance at the March low of $0.5281. With buyers targeting the next resistance point of $0.90 and a possible 9% rally from current levels, Stax remains in the spotlight.
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At the time of writing, Stax is priced at $0.79, reflecting a -2.10% change over the last 24 hours. The recent price action brings Stax’s market capitalization to $1,114,016,54.52. In particular, Stax has shown its strong growth potential since the beginning of the year, showing a staggering 277.22% change for him.
STX serves as the native token of the Stacks blockchain, which operates as a Layer 2 blockchain network leveraging the security of the Bitcoin blockchain for transaction settlement. Stacks continues to attract the attention of both investors and developers due to its unique positioning and robust ecosystem.
Featured images from iStock.com and charts from Tradingview and Coingecko.com