The Stacks (STX) crypto price has experienced a remarkable surge in the last two days, despite the continued worries about regulations in the US. In the past 24 hours, STX has seen a jump of more than 15%, with a total increase of over 22% from Tuesday’s lowest level.
Possible Reasons Behind the Rally
Stacks is a blockchain with a unique purpose of building an application layer for the Bitcoin ecosystem. According to its website, the network has approximately $901 million locked in its staking ecosystem, with over 2000 BTCs distributed to stakers so far. It is unclear what has caused the unexpected surge in STX’s price, but it could be linked to the rising success of Bitcoin.
Bitcoin saw a 3% increase in the last 24 hours, while other altcoins like Terra Classic and Pepe have seen double-digit increases. Furthermore, the Ordinals Non-Fungible Token (NFT) platform has seen a booming success, with fees revenue of over $102.7 million in the past 30 days according to TokenTerminal. Not to mention the record-breaking Ordinals sales of $195 million in May, as compared to $33.2 million the previous month, according to CryptoSlam.
The success of Ordinals could encourage developers to move towards Stacks’s ecosystem, and the fact that Bitcoin was not included among the tokens highlighted as securities by the US government can also be seen as a factor in STX’s price increase.
Stacks Price Prediction
It is possible that this surge is a dead cat bounce, which follows a sharp dip. According to the daily chart, STX has retested the upper side of the descending channel shown in orange, and the coin’s 50-day and 100-day moving averages have made a bearish crossover. This suggests that the coin is likely to see further losses unless it rises above both averages, in which case the next level to watch would be $0.5200, the lower side of the channel.
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