The cryptocurrency market is abuzz as Stacks (STX), a leading layer-2 protocol built on Bitcoin, has shown significant bullish momentum. Over the past 24 hours, STX has surged 7%, climbing to $0.3781 and drawing renewed interest from retail and institutional traders alike.
Exploring the STX Rally
According to data from DeFiLlama, the Stacks ecosystem is experiencing a notable increase in its Total Value Locked (TVL). Bitcoin’s overall DeFi TVL rose from $6.728 billion last week to $7.176 billion, while Stacks’ TVL grew to $129.73 million, up from $116.62 million over the same period.
This surge indicates a growing appetite for Bitcoin’s DeFi utilities, with Stacks emerging as a vital player in the space. Retail traders are particularly drawn to the network, as evidenced by STX futures’ Open Interest (OI), which currently stands at $27.79 million—up significantly from $16 million recorded just a week ago.
The Technical Perspective
From a technical standpoint, the STX/USD 4-hour chart reflects a bullish trend. The cryptocurrency has added 17% to its value since rebounding off the $0.3060 50-day EMA support level earlier this week. The Relative Strength Index (RSI) sits at 83, signaling increased buying pressure, albeit entering overbought territory. With the potential for a minor correction, STX could retest $0.3500 as a support-turned-resistance level.
If bullish momentum continues, the price could aim for the pivotal $0.413 resistance level, marking a significant milestone not seen since November 2023. An extended rally might push STX upwards to $0.50, a level it hasn’t reached since the October deleveraging event.
How to Begin Investing in STX
Interested in adding STX to your portfolio? Platforms like eToro, a trusted crypto investment platform, allow you to easily invest in Stacks. With features that let you automatically copy the top-performing traders and deposit funds via multiple payment methods, eToro is an excellent choice for both beginners and seasoned investors.
Final Thoughts
The surge of STX reflects growing confidence in Bitcoin’s decentralized finance (DeFi) utilities, with Stacks taking center stage. As its value continues climbing and the TVL increases, this protocol remains a key player for investors looking to capitalize on Bitcoin’s evolving DeFi ecosystem.
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