The Stacks (STX) bulls are currently riding the Bitcoin rally. Within the last seven days, the Stacks token is up 70%, 255% over the last 30 days, and a whopping 456% over the last three months. Without a doubt, the layer-2 technology has benefited from Bitcoin’s strength during the recent move; BTC dominance has increased from around 40% at the beginning of the year to nearly 46% at the moment.
With the brewing banking crisis and optimism towards Bitcoin, there is a strong case for Stacks to continue rising in the medium term. However, the 1-week chart shows that STX is approaching an important level where it could face a strong headwind.
At press time, Stacks was trading at $1.22 and targeting the 38.2% Fibonacci retracement level at $1.40. At this price, the STX bulls may stall and a pullback may occur. This is also supported by the overbought RSI on the weekly chart at 83.
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