Stacks reclaims $0.314 – Why STX bulls should watch THIS next
STX price uptrend till mid-October has been interrupted, but there are catalysts that can boost demand for the altcoin.
Stacks [STX] has rallied 7.29% in the past 24 hours at the time of writing, climbing back above the $0.314 local supply zone from the previous week. The swift surge on Saturday, the 31st of October, reached a local high of $0.399 before retracing by 22.28% in the following two hours.
The Stacks altcoin price rebound from $0.268 began on Thursday, the 29th of October, after the selling pressure on Bitcoin [BTC] and the wider crypto market began to ease.
While the major altcoins have not shown signs of a sustained recovery, Stacks could be on track for a sizeable price bounce. Here’s a closer look at why STX gains are termed a “bounce” and not an uptrend.
Bullish STX structural integrity breached
On the 1-day timeframe, the swing low from September at $0.30 gave rise to the new push higher to $0.465. The losses in the past three weeks saw STX fall below this swing point. This development was a bearish change of character.
Moreover, the bounce to $0.399 was also met with an immediate sell-off.
Together, these signs showed that bears were dominant. Even though the $0.314 local resistance was overcome, swing traders should be careful going long. Another dip below $0.30 would underline seller strength.
Increased liquid staking participation boosts STX demand
In October, AMBCrypto reported that Stacks Labs had filled most of its Bond 2 through Stacking DAO, with Xverse pool also participating. The aim of Stacks is to enable Bitcoin-native finance that allows holders to stake, borrow, transact and interact with decentralized finance without giving up custody.
STX price uptrend till mid-October has been interrupted, but there are catalysts that can boost demand for the altcoin. The upcoming Bitcoin staking bonding period is expected in the second week of October.
The Epoch 4.1 upgrade, targeted for early December, is another item to watch out for. It makes Clarity 7 the default language version for new smart contracts and brings additional improvements to the network.
Final Summary
- The Stacks price action took a bearish shift after a price drop below $0.30 in October.
- There are bullish catalysts ahead that could sway the sentiment. Increased staking demand and network upgrades, alongside a possible BTC recovery, are things to watch for.
