Stacks (STX) Registers Over 20% Gains On Daily Chart, Can It Test $1?

Stacks (STX) is among the coins that registered impressive gains this year, with over 168% monthly gains. It was among the cryptos that maintained their gains on various days of extreme bearish trends.

However, as of last week, STX recorded consecutive days of price decline before recording its present gains. STX scored over 22% yesterday, March 13, and has resumed today with bullish momentum. 

At press time, the token rallied 20.50%, with its price at $0.8942. Given the momentum at which it rallied over the past four days, Stacks might be heading to $1. 

The Federal Reserve Stepped In For A Change

The crypto market recorded tremendous price declines across many cryptocurrencies in recent weeks. The downturn was partly due to the uncertainty surrounding the CPI data and Fed’s interest rate hikes. The bearish sentiment pushed most coin prices down, including STX. 

Stacks’ ride on Ordinals NFTs’ popularity faded, ushering successive days of price downturn. Per historical data, Stack’s price went from $0.9033 on March 3 to $0.5754 on March 10. However, since March 10, Stack has been showing signs of recovery, which might be giving investors hope that it might soon reach $1.

One factor that is pushing STX and other cryptocurrency prices is the improved market sentiment. The crypto market sentiment has improved after the US Federal Reserve announced its new funding initiative to support banks in meeting their depositors’ demands. This news came after the implosion of three crypto-friendly banks, Silvergate, Signature, and Silicon Valley Bank.

Following the collapse of three top banks in the US, the Federal Reserve approved a funding initiative to relieve public concerns. The three banks had significant engagements in the crypto industry. As of March 3, Silvergate closed its crypto payment platform and announced plans to liquidate. 

On Monday, Silicon Valley Bank revealed its inability to meet customers’ demands, causing federal regulators to take over.

Improved Market Sentiments Pushes STX Price, What’s Next?

Cryptocurrency prices soared to new highs in a day following the Feds announcement, reflecting the current market sentiment. The improved market sentiment is evident on the March 14 Fear and Greed Index, which reads 56, suggesting greed. This index shows investors’ sentiments have turned bullish, which is why most coins, including STX prices, are rallying.

Moreover, the Stacks network is speedily developing its Nakamoto Release and sBTC, which would unlock three key features. The Stacks Nakamoto Release would enable a Bitcoin economy, allow developers to write on Bitcoin, and scale network speed and capacity.

Stacks’ sBTC is among the hottest topics in the STX community and might be partly responsible for the recent price action. Asides from registering a price increase, STX also observed an uptick in trading volume. As per data from CoinMarketCap, STX’s 24-hour trading volume has increased by 32.66%. 

STX is currently trading at $0.8967, with a high of $0.8924 and a low of $0.7188, a notable increase from its past-day price. It has surpassed its support level at $0.723495 and may rise further to $1 should it break the $ 0.858766, $0.919226, and $0.99407 resistance levels in the coming days.