Stacks: New Network Upgrades Push STX Price Up by 18%

Stacks (STX) has regained and built up its momentum over two weeks after a bloody September start. Since then, the token has garnered much-deserved attention as developments on the platform mount up. According to CoinGecko, STX surged over 18% since last week, representing a strong flip in investor sentiment. 

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Stacks continue to make noise as more partnerships are unveiled this week; several of which might open a new reality on Stacks. With the hyped potential of the so-called Bitcoin economy underneath Stacks, investors and traders might see a lot of green in the coming days. 

New Developments Fuel STX Growth 

In an X post by the official Stacks account, the platform has announced that Hermetica.fi,  a stablecoin provider in the Stack’s ecosystem, has deployed USDh. The stablecoin has been described as the first “Bitcoin-backed, yield-bearing” synthetic dollar available on the retail market. Hermetica’s marketing of the new stablecoin is aggressive, with a time-limited staking APR of 25%. 

Stacks’ leading Bitcoin L2 ecosystem continues to grow 🧡

Congratulations to @HermeticaFi for the official launch of their USDh stablecoin on Stacks.

To celebrate, Hermetica is offering a prize pool to early movers. More information is available below. 1/2 pic.twitter.com/3EYmefYEPI

— stacks.btc (@Stacks) September 25, 2024

Institutional investors might also be around the corner as Anchorage Digital, an institutional wallet provider, has announced their support for Stacks, opening the door for the platform to be exposed to institutional entities, possibly improving the Stacks’s future development. Introducing institutional investors will push the platform to develop at a faster pace. 

With the final step in activating the Nakamoto upgrade, several SX users have released posts regarding the benefits of the network upgrade. All in all, the conclusion is the same: the Nakamoto upgrade will significantly improve user experience while simultaneously allowing developers to access the $1 trillion in liquidity under Bitcoin, with sBTC, a 1-to-1 Bitcoin-backed asset in Stacks, integrated with Solana and Aptos for quicker distribution and adoption.

Investors Should Watch Stacks On These Levels

STX retains some of its momentum, breaking any short term possibility of a reversal as it breaks through $2.02 in the short term. This price action nets the bulls some serious gains, but this triumph might only be temporary as the bulls lose momentum to maintain a steady trajectory.

The relative strength index (RSI) of the token suggests that the bulls may encounter a wall around $2.2 in the short term, possibly letting the bears gain strength equaling the current bullishness. A movement like this will keep the token’s price stable, possibly giving the bulls enough time and room to maneuver upwards in the medium term.

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If STX remains at its current support level of $2.02, we might see a surge upward in the coming days; that’s if the the pullback the market is currently experiencing to flip bullish. However, if the bulls fail to hold this position for a medium term movement, the bears might pull the token towards $1.885 or lower if they build up enough momentum.

Featured image from Stacks, chart from TradingView