The Stacks price was exchanging hands at $1.76 as of 2:30 a.m. EST, after rising 12% over the last 24 hours.
This project is up 694% in the last 12 months. With the improving market conditions fueled by the optimism of a sport Bitcoin ETF approval, many projects are now looking good.
As a result, Bitcoin and all Bitcoin-related projects are benefitting hugely from current events. Stacks is a Bitcoin layer for smart contracts; it enables smart contracts and decentralized applications to use Bitcoin as an asset and settle transactions on the Bitcoin blockchain.
The protocol is a leader among layer 2 blockchains built on the Bitcoin network. It is now in a position to take the best advantage of the increasing demand for Bitcoin and Bitcoin blockchain space.
Stacks uptrend is not over
The 50-day exponential moving average (EMA) at $0.61 provided a launching pad for the STX price on Nov. 23, 2023, as it embarked on an uptrend. Since then, it has recorded a series of higher highs and high lows leading to the appearance of an ascending parallel channel on the daily chart.
Note that as long as the price remains within the confines of this channel, it will continue to rise. The bulls will now try to push the Stacks price past the $1.80 psychological level. If they succeed, STX could climb to confront resistance from the upper boundary of the prevailing channel at $1.95.
Higher than that, the next logical move would be a rise toward the $2.0 psychological level. This would represent a 14% ascent from the current price.
STX/USD Daily chart
This optimistic outlook was supported by the upward movement of the relative strength index (RSI). The price strength at 66 suggested that the buyers had begun dominating the market.
In addition, the moving averages were pointing upward, a signal that the market conditions favor the upside. Note that the STX price sat on all the major moving averages, which represented areas of strong support on the downside.
On the downside, buyer exhaustion might set in while bears decide to book profits at current levels. This would cause a correction that could see the price drop first toward $1.6 and later to the lower boundary of the ascending channel at $1.48. This is where Stack’s downside could be capped in the short term.