- The native token of Bitcoin smart contracts protocol, Stacks, jumps 22%.
- The STX/USDT pair rallied close to the previous all-time high before trimming gains.
- Selloff would continue until RSI drops to the neutral zone.
KOLKATA (CoinChapter.com) – In October, Bitcoin smart contracts platform Stacks token STX lift off vertically, two times in a row. The first jump on October 10 saw the STX/USDT pair shoot up by 46% ($1.4 to $2.6). Monday’s vertical run led to the pair adding 22% gains.
Related: Bitcoin smart contracts protocol Stacks shoots up by 20%, what’s next for STX?
STX lifted off from $2.2 at the London opening bell and pumped to $2.82, a few cents shy from its all-time high of $2.86 logged on April 5, 2021. However, sellers interrupted the rally at its height on overbought concerns to book immediate profits, which led to prices dipping to $2.39.
What Is Stacks?
According to the official website, Stacks is “an open-source network of decentralized apps and smart contracts built on Bitcoin.” It enables developers to leverage Bitcoin’s security, liquidity, and network and create applications that extend and scale the world’s first blockchain scope.
The project is considered a Layer-1 blockchain with Bitcoin as the foundational layer. Stacks allows cross-chain transactions with Bitcoin, and akin to Ethereum’s Solidity, it boasts of a native programming language called Clarity.
STX Recovering But Giving Off Bearish Vibes
The latest rally solidified the recovery path for STX and set the frontier for a new potential all-time high. During the May crypto market crash, the token underwent an 83% correction from $2.85 to $0.5. However, things began to look bright after July 20, 2021, when the entire cryptocurrency market resumed its uptrend after a brief bout of bearishness.
Since October 10, the STX/USDT pair charted new higher lows with every price jump. So the trend paints a bullish picture for the token’s prices. But relative strength index (RSI) and moving average convergence divergence (MACD) indicators spark bearish overtones.
RSI printed a downtrend even as the Bitcoin smart contracts token kept pushing higher on the back of sporadic buying spikes. Numbers hit new lows starting at 56.3, moving down to 42.8, and slightly inching up to 43.98. Plus, MACD is nearing the completion of the bullish cycle (blue wave about to cross below the red wave).
Buyers looking to place fresh bids must look for reversal signs after the ongoing bearish setup. A correction down to $2 (50-day exponential moving average wave) would provide a turning point for a bullish rebound. However, bears could give up before the said price. In such a case, a reversal signal above $2 would be worth buying.
