Stacks price jumped by more than eleven percent on Monday as cryptocurrency recovery continued. The STX token rose to a high of $0.5023, the highest level since August 31st. It has risen by more than thirteen percent from the lowest level this year.
This surge is likely due to Bitcoin, which flipped the important resistance at $27,000 on Monday. This was a major recovery since Bitcoin crashed below $25,000 last week.
Analysts believe this rise could be associated with the upcoming Federal Reserve interest rates decision scheduled for Wednesday. Most believe the Fed will leave interest rates unchanged at 0.25%.
The US is currently in the midst of a major strike, called by the United Auto Workers (UAW). This strike is expected to last for some time, and the Fed will likely pause to assess the state of the economy.
Data by CoinGlass indicates shorts liquidations rose to $60k on Monday, the highest level since September 5th. Additionally, Stacks open interest in the futures market rose by more than 28% in the past 22%.
The daily chart shows that the STX crypto price has been moving sideways in the past few days. It has found a strong support at $0.4176, the lowest level since last week. Despite the comeback, the coin remains below the 50-day moving average and the descending trendline shown in black.
Therefore, a bearish breakout is expected in the coming days if it moves below the support at $0.4176. The stop-loss of this trade will be at $0.5500.
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The post Stacks price spikes as BTC soars above $27k: Is it a buy now? appeared first on CoinJournal.