Wednesday, April 17, 2024

Stacks (STX) Tallies Over 6% In Last Week, What’s Pushing It?

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Stacks, the layer-1 protocol that enables smart contracts on Bitcoin, have demonstrated incredible resilience amid bearish market trends. Stacks’ STX token price has increased by over 6% over the past week and joined top-gaining coins today with a nearly 0.53% price gain, while the broader crypto market plunged by 1.63% in the last day.

STX’s price moves have left investors wondering if it will soon conquer the $0.7 level, as its seven-day price range is between $0.532995 and $0.669564.

Stacks (STX) Bucking Bearish Trends Amid Heightened Regulatory Uncertainty 

According to CoinGecko data, STX rebounded yesterday from a two-day price decline after the total crypto market cap witnessed a 1.6% increase. The token saw a massive 11% price decline on Tuesday, June 6, before regaining momentum with an 8.9% price increase on June 7.

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As a DeFi-enabling protocol, Stacks (STX) is among the tokens prospering in the heat of the SEC’s lawsuit against Binance and Coinbase. After the US regulator pronounced several digital tokens, including SOL, ADA, BNB, MATIC, and ATOM, as securities, DeFi protocols witnessed increased trading volume.

The same goes for STX, and according to CoinMarketCap data, STX saw a 0.65% increase in market cap over the past 24 hours. The crypto market cap turned red after news of the two lawsuits broke out in the crypto ecosystem. Although STX went with the flow, dropping 0.3% and 11% on June 5 and 6, it soon recovered momentum.

The token’s timely recovery could be why it retained most of its 7-day and 14-day gains. Data shows that STX’s 14-day price increase is 11.9%, while Bitcoin only recorded a 0.5% increase in the last two weeks.

STXUSD chart
Stacks’ price is currently trading at $0.6438 in the daily chart. | Source: STXUSD price chart from TradingView.com

STX Price Outlook

Volatility is high across various assets in the crypto market, while sentiment is down as fear and uncertainty grip investors due to heightened enforcement actions. The Fear& Greed Index has been neutral over the past month, but technical analysis suggests a bullish outlook for STX.

At press time, STX price has exceeded the 10, 20, and 30-day Exponential and Simple Moving Averages, suggesting a strong buy signal. However, the momentum is a little bearish, as the token has to conquer the 50 and 100-day Simple Moving Averages to break above the $0.7 mark.

The bull Bear Power is currently neutral at 0.0655. Therefore, the bulls must overpower the bears before the STX price can rally with bullish momentum in the coming days. Also, STX is trading at $0.65, gearing up to touch $0.7. That could be possible if the bulls conquer the bears in the coming days.

Featured image from Pixabay and chart from TradingView.com

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