Stacks (STX) has regained momentum over the past two weeks following a rough start in September. Since then, the token has attracted significant attention as developments within the platform continue to grow. According to CoinGecko, STX has risen over 18% since last week, indicating a notable shift in investor sentiment.
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Stacks remains in the spotlight as new partnerships are announced this week, several of which could redefine the landscape of Stacks. With the anticipated potential of the so-called Bitcoin economy supporting Stacks, both investors and traders may witness a significant uptrend in the upcoming days.
New Developments Fuel STX Growth
In a post on X by the official Stacks account, it was announced that Hermetica.fi, a stablecoin provider within the Stacks ecosystem, has launched USDh. This stablecoin is touted as the first “Bitcoin-backed, yield-bearing” synthetic dollar available on the retail market. Hermetica is promoting the new stablecoin energetically, offering a limited-time staking APR of 25%.
The leading Bitcoin L2 ecosystem, Stacks, continues to expand 🧡
Congratulations to @HermeticaFi on the official launch of their USDh stablecoin on Stacks.
To celebrate, Hermetica is offering a prize pool for early adopters. More details below. 1/2 pic.twitter.com/3EYmefYEPI
— stacks.btc (@Stacks) September 25, 2024
Institutional investors could soon join the fray as Anchorage Digital, an institutional wallet provider, has announced their support for Stacks, potentially exposing the platform to institutional players and enhancing its future development. The introduction of institutional investors could accelerate the platform’s growth.
With the final step in activating the Nakamoto upgrade, several SX users have posted about the advantages of the network upgrade. Overall, the consensus is clear: the Nakamoto upgrade will greatly enhance user experience while enabling developers to tap into the $1 trillion in liquidity beneath Bitcoin, with sBTC, a 1:1 Bitcoin-backed asset within Stacks, being integrated with Solana and Aptos for quicker distribution and adoption.
Investors Should Watch Stacks On These Levels
STX retains a degree of momentum, breaking through $2.02 temporarily, which could lead to significant bull gains. However, this success may be brief unless the bulls can sustain their momentum going forward.
The relative strength index (RSI) for the token suggests that the bulls may face a barrier around $2.2 shortly, possibly allowing the bears to regain strength equal to the current bullish sentiment. Such a movement could stabilize the token’s price, giving bulls the opportunity to maneuver upwards in the medium term.
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If STX remains firm at its support level of $2.02, we could see an upward surge in the next few days, especially if the market’s current pullback gives way to a bullish phase. However, if the bulls can’t maintain this position for a medium-term rally, the bears might drag the token down to $1.885 or lower if they gain sufficient momentum.
Featured image from Stacks, chart from TradingView
