The Stacks (STX) bulls are currently riding the Bitcoin rally. Within the last seven days, the Stacks token is up 70%, 255% over the last 30 days, and a whopping 456% over the last three months. Without a doubt, the layer-2 technology has benefited from Bitcoin’s strength during the recent move; BTC dominance has increased from around 40% at the beginning of the year to nearly 46% at the moment.
With the brewing banking crisis and optimism towards Bitcoin, there is a strong case for Stacks to continue rising in the medium term. However, the 1-week chart shows that STX is approaching an important level where it could face a strong headwind.
At press time, Stacks was trading at $1.22 and targeting the 38.2% Fibonacci retracement level at $1.40. At this price, the STX bulls may stall and a pullback may occur. This is also supported by the overbought RSI on the weekly chart at 83.
Don't wait! Jump on this Crypto Deal and get a 150% Welcome Bonus plus 100 Free Spins on your deposit today! 570% up to 12 BTC + 300 Free Spins for new players & 1 BTC in bonuses every day, only at Wild.io. Play Now!In the worst case scenario, a retracement towards the 23.6% level at $0.94 could be in play, which could provide an excellent buying opportunity for bulls. However, if Stacks blows past the $1.40 level with ease, $1.78 (50% Fibonacci) and $2.16 (61.8% Fibonacci) would be the next targets for a bull market rally.
Before tackling the all-time high of $3.38 from November 2021, the price level of $2.70 would be the last major hurdle.
Stacks continues to rally, 1-week chart | Source: STXUSD on TradingView.comLooking at the 1-day chart reveals that Stacks bulls are showing some hesitation at the moment. The range between $1.30 and $1.32 is the area which is preventing a push towards the 38.2% Fibonacci retracement level at $1.40 in the weekly chart for the moment.
BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?A consolidation down to $1.09 would be healthy to bring down the RSI of 72 in the daily chart, before a bigger rally can continue.
STX price, 1-day chart | Source: STXUSD on TradingView.comStacks Exhibits Persistent Strong Narrative In 2023
The much anticipated Stacks 2.1 update was successfully activated yesterday. It introduces several improvements to stacking that will eliminate inefficient or confusing aspects of stacking, PoX rewards, and the security mechanism.
In addition, Clarity has been enhanced with a wealth of new keywords, including writing Clarity contracts that respond to Bitcoin transactions and writing Clarity contracts that ingest off-chain data.
