The Stacks (STX) price breakout from a descending resistance trendline, and the $0.53 resistance led to a high of $0.68.
With several new developments being announced this week, how long will this STX price breakout continue?
Stacks sBTC Developer Release is Live
Today, CooperHQ announced that it is integrating Stacks. Securing sBTC and Stacks assets has become a seamless process with the introduction of Copper institutional services, extending support to Stacks’ other ventures, including the Nakamoto upgrade.
Stacks stands out as the premier Layer-2 (L2) solution for Bitcoin, offering essential features like smart contracts and enhanced scalability options for Bitcoin innovators.
The sBTC Developer Release is now live in a significant development, opening up the gateway for effortless Bitcoin transfers between layers and transforming Bitcoin into a fully programmable asset.
This release includes a user-friendly front-end application, streamlining the testing of deposit and withdrawal transactions for sBTC.
Developers will be able to harness this early version of sBTC, a solution engineered to minimize trust issues, facilitating secure movement of Bitcoin between the Bitcoin L2 and Stacks L2 while minimizing counterparty risks.
The next pivotal milestone on the horizon is the deployment of the Nakamoto testnet. This groundbreaking move will provide developers and users with a platform to rigorously test the novel consensus rules engineered to bolster the security of the Stacks blockchain.
Additionally, this upgrade aims to significantly reduce transaction times to a remarkable 5 seconds, enhancing the overall efficiency of the Stacks ecosystem.
What Are the Analysts Saying?
Several cryptocurrency traders on X are bullish on the future prospects for the cryptocurrency.
DaanCrypto believes the STX price will increase considerably if it breaks out from the $0.52 horizontal resistance area. But, he also stated that the trend will be bearish if a close below $0.42 occurs.
STX/USDT Daily Chart. Source: X
Crypto Tony has a very similar bullish outlook. However, he has outlined a bullish ascending triangle pattern for the altcoin instead of horizontal long-term levels.
STX Price Prediction: How Long Will Increase Continue?
The daily timeframe price action and RSI support the ongoing STX price increase.
Firstly, the price action shows that STX broke out from a long-term descending resistance trendline on October 16. Two days later, it broke out from the aforementioned $0.53 horizontal resistance area.
With the RSI as a momentum indicator, traders can determine whether a market is overbought or oversold and decide whether to accumulate or sell an asset.
Bulls have an advantage if the RSI reading is above 50. But, the opposite is true if the reading is below 50.
The RSI is above 50 and increasing, both signs of a bullish trend. Additionally, it has generated bullish divergence before the breakout, further supporting the upward movement.
If the increase continues, the two closest resistance areas will be at $0.82 and $1.20. The resistances are 30 and 85% above the current price, respectively.
STX/USDT Daily Chart. Source: TradingView
Despite this bullish STX price prediction, failure to sustain the increase can lead to a 15% drop in the $0.54 horizontal support area.
Currently, there are no signs that this will be the case.
For BeInCrypto‘s latest crypto market analysis, click here.
