Bitcoin price went parabolic on Monday as the path to $100,000 became clearer. BTC surged to $88,000 for the first time on record, and the Fear of Missing Out (FOMO) could push it much higher in the coming days. Stacks (STX), a key layer-2 network for the Bitcoin ecosystem could be the next big thing.
Stacks price is ripe for a bullish breakout
The daily chart shows that the STX token price may be ripe for a massive bullish breakout that could push it to the year-to-date high of $3.86, which is about 84% above the current level.
Stacks has jumped above the 50-day and 200-day Exponential Moving Averages (EMA), meaning that bulls are gaining strength for now.
The token has also formed an ascending triangle pattern, a popular bullish sign. It has now moved to the upper side of the triangle, meaning that a bullish breakout could happen as the crypto fear and greed index continues rising.
The Relative Strength Index (RSI) and the Stochastic Oscillator have pointed upwards. Therefore, the token will likely have a bullish breakout as buyers target the next key resistance level at $3.86, its highest level this year.
This bullish view will become invalid if the coin drops below the lower side of the ascending trendline.
STX crypto has numerous catalysts
The biggest catalyst for the bullish Stacks price forecast is the ongoing crypto bull run following Donald Trump’s election. Analysts believe that Trump will be a more friendly president because he has skin in the game, such as through his World Liberty Financial project.
Internally, Stacks recently introduced the Nakamoto upgrade, which introduced several features. The most notable one of them was that Stacks transactions, once confirmed, are now irreversible. It also reduced the amount of transaction times.
The network will also launch a more technical foundation for the sBTC coin in the coming months. This launch will likely facilitate the growth of the Stacks ecosystem, which has been growing in the past few months. The network has a total value locked of over $114 million.
Most importantly, institutions are embracing the Stacks ecosystem. Some of the most notable companies that are building on the network are Aptos, Blockdaemon, and BitGo. Grayscale has also launched its Stacks fund that is seeing more inflows.
