- Stacks crypto price has jumped by over 40% from the lowest point this month.
- It had formed a falling wedge pattern, which is usually a bullish sign.
- The token has more upside as buyers target the resistance at $0.70.
Stacks price has made a spectacular recovery in the past few days as investors attempt to buy the dip after it plunged to a multi-month low of $0.4412. STX has risen in the past five days straight and is now trading at $0.6267, which is about 42% above the lowest level this month.
2 potential catalysts for STX
There are two main reasons why Stacks price is rising. First, it is rising because of the decision by Blackrock to file for a Bitcoin exchange-traded fund (ETF) with the SEC. It is still not clear whether the agency will accept the iShares Bitcoin Trust since Coinbase will be the custodian of the coins. And as we have written before, Coinbase is going through a major conflict with the SEC.
Analysts believe that Bitcoin will be a beneficiary of the SEC lawsuit against Binance and Coinbase. For one, the agency argues that the two exchanges are offering unregistered securities. The SEC and CFTC have all agreed that Bitcoin is not a security. Instead, they believe that the coin is a commodity. As such, there is a likelihood that many altcoin investors will rotate to the safety of Bitcoin.
Stacks has a relationship with Bitcoin since it makes it possible for developers to build decentralized applications (dApps). Some of the top dApps built using Stacks are Alex, Frens, HeyLayer, and HireVibes among others. Therefore, Stacks will likely benefit as Bitcoin’s ecosystem grows.
The other reason why STX price is rising is that the Stacks ecosystem is growing. For example, DeFi protocol Bitflow Finance announced that it had launched sBTC/sBTC stableswap pool that will make it possible for people to swap tokens.
Stacks price prediction
The other reason why the STX crypto price has done well is because of technicals. As shown in the daily chart above, we see that Stacks price formed a falling wedge pattern that is shown in green. In price action analysis, this is one of the most popular bullish reversal patterns. Stacks crypto price has now moved above the upper side of this pattern.
Stacks has also moved above the 25-day exponential moving averages and is stuck at the 50-day MA. It has also jumped above the key resistance point at $0.5281, the lowest point in March. Therefore, there is a likelihood that Stacks will continue rising as buyers target the next resistance point at $0.70, which is about 11% above the current level.
