STX faces key resistance at $0.39 after a 7% rally
Key receivers
Stacks' STX is up nearly 7% in the last 24 hours and is trading at $0.378.
Thanks to the resistance level at $0.39, the coin may return to $0.35.
STX reached $0.39 while TVL was growing
STX, the native coin of Stacks, a layer-2 protocol built on top of Bitcoin, is trading at $0.37 after gaining 7% in the last 24 hours.
The rally comes at a time when Stacks is showing a growing Total Value (TVL). According to data from DeFillama, Bitcoin's TVL is at $7.176 billion, up from $6.728 billion last week.
There is renewed interest in Bitcoin's DeFi utility, with Stacks one of the leading DeFi platforms on the Bitcoin blockchain.
Additionally, DeFillama data showed that Stacks TVL was at $129.73 million, up from $116.62 million last week.
Retailers are also renewing their interest in the network. Stacks Futures open interest (OI) is currently at $27.79 million, compared to $16 million recorded a week ago. This indicates an influx of capital driven by a new sense of vulnerability among traders.
STX could recover below $0.35 if it holds resistance at $0.39.
The 4-hour chart of STX/USD is bullish and bullish as STX has rallied 17% since reaching the 50-day EMA of $0.3060 on Sunday. At press time, STX is trading at $0.3781 and may rise in the near future.
If it extends the gains, STX could rise to the $0.413 resistance level for the first time since November 13. An extended bullish run will allow STX to hit $0.50 for the first time since the October 10 victory event.
The Relative Strength Index (RSI) on the 4-hour chart is at 83, indicating strong buying pressure. However, with the RSI in the overbought range, STX may undergo a slight correction in the near term.
If that happens, STX could retest the $0.3500 resistance-inverted support level, with the 50-day EMA at $0.3060 expected to be a strong support zone.
