STX Coin Gearing Up for a Comeback: Analyst Weigh In

Stacks (STX) crypto has represented mixed cues, suggesting potential growth and caution. However, it defended the 50-day EMA support mark.

Stacks (STX) crypto has shown mixed signals, hinting at potential growth and caution. However, it found strong support at the 50-day EMA, indicating a potential buying pressure that could lead to a bounce back soon.

At the time of writing, STX coin price was trading at $2.26. The token showed flat movements with over -0.89% change in the past 24 hours. Its market cap declined to $3.43 Billion, ranking 47th among the top crypto coins.

As per VanEck, which predicted several trends, the crypto bull market was at its highest in Q1. On the other hand, new records were set in Q4, where one can observe the major advances in different sectors.

Stacks Crypto is the US-based Bitcoin Layer 2 solution that was prominent among the early movers in the crypto market. It was estimated that Bitcoin L2s would have 100K BTC in TVL. Stacks was crucial in reaching this goal.

Earlier on, Stack showed the potential to evolve and expand. Because of this origin story, it reached a market capitalization of $3.5 Billion.

The strong developer activity within the Stacks ecosystem, combined with the upcoming launch of sBTC, made it highly positioned to benefit from the growing L2 market.

Owing to this market consensus and technology affinity, STX coin may be set to participate in the predicted wave of Bitcoin L2s, which would create a strong case for the token to reach at least $3.80 or even higher.

Teddy noted in a tweet that Stacks crypto is preparing for a surge as it approaches a weekly major resistance level.

Moreover, the upcoming launch of the Stacked Bitcoin token (sBTC) on December 17 could add fuel to the buying pressure, and the following sessions can expect a movement to the upside of $3.70.

Similarly, Michael van de Poppe shared in a tweet that the STX coin price has flipped to the breakout zone of $2. Moreover, a continuation pattern could be seen toward the upside mark of $3.80. This could happen as the ecosystem around Bitcoin is rapidly expanding.

The daily chart of Stacks crypto highlighted a steady uptrend, as the EMA lines were aligned in ascending order. At the same time, shorter EMAs above longer ones suggested a bullish trend.

Also, the Chaikin Money Flow (CMF) depicts a 0.30 reading, highlighting that significant liquidity enters the market. Despite the pullback from the $3 mark, the STX coin still held gains on the upward trajectory and stayed above the rising trendline support zone of $2.

If the uptrend continues to strengthen, the STX coin could rise to $3.60 and $4, a potential 40% growth. On the downside, the support levels are $2 and $1.90. Suppose STX goes down as much as $1.50; that would mean a potential 25% correction.

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading