The price of Stacks (STX) surged 20% as Bitcoin surpassed the $88,000 mark – Will the upward trend continue?

Stacks (STX) has maintained an impressive recovery momentum, increasing by an additional 9% on the day and currently trading around the $0.76 mark at the time of writing. This upward trend follows a 10% increase from the previous day, indicating that market momentum is being reinforced. On-chain data reflects a positive outlook, with open contracts (OI) and STX trading volume both increasing. Technically, the upward trend remains dominant, with the next price target set at the $0.84 zone.

The on-chain metrics of Stacks indicate a positive trend

Stacks — the layer-2 scaling solution for Bitcoin (BTC) — has recorded an increase of more than 19 percent since the beginning of the week, amid the BTC price surpassing the $88,000 mark. According to data from Coinglass, (OI) open contracts for STX on exchanges jumped from $33.28 million on Saturday to $62.13 million on Tuesday — marking the highest level since Feb. 18. OI’s strong momentum reflects the influx of new money into the market, while also indicating that buying demand is increasing – a positive indicator for STX’s prospects for further upside.

! STX Open Contract Chart | Source: CoinglassIn addition, the marked improvement in trading activity and liquidity on the STX network is also a factor reinforcing this positive trend. According to statistics from Artemis, STX’s daily trading volume rose sharply from $34.8 million on Saturday to $241.40 million on Tuesday — the highest level since the beginning of the year.

Daily volume chart of STX | Source: Artemis## Stacks price forecast: STX bulls targeting the $0.84 mark

On Sunday, STX officially broke through the downward trend line formed by connecting the peaks since early February. This breakout move triggered a strong increase of 10.74%, helping the closing price rise above the 50-day EMA ( at the $0.68 mark the next day. As of the time of writing on )Tuesday(, the upward momentum shows no signs of cooling off, with STX continuing to climb nearly 9% to $0.76.

If the current trend continues, STX may continue to expand its recovery momentum and head towards the next important resistance zone at $0.84.

! [])https://img.gateio.im/social/moments-6e7c58f4d2ade6b7fa7fc4a5315db7bc(STX/USDT daily chart | Source: TradingViewThe relative strength index )RSI( on the daily timeframe is currently at the level of 67 and is approaching the overbought zone )70(, indicating that the bullish momentum is still very strong. The fact that the RSI has not reached the overbought level shows that there is still room for the price to continue to go up. However, traders should be aware if the RSI is rejected in the overbought zone and turns down below the 70 mark – this could be an early signal that the rally is losing strength. Besides, the MACD indicator also recorded a bullish cross last week, further reinforcing expectations of a sustained uptrend.

However, in the event that STX faces short-term correction pressure, the zone $0.68 – coinciding with the 50-day EMA – will serve as the nearest support level to watch.

Disclaimer*: This article is for informational purposes only and is not investment advice. Investors should conduct thorough research before making any decisions. We are not responsible for your investment decisions*

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