Popular crypto analyst and DataDash host Nicholas Merten recently announced in a strategy session that he expects a bullish trend for Stacks (STX), a project built on the Bitcoin (BTC) Blockchain. Merten mentioned that Stacks shows strong upward potential, especially due to its significant parallels with the current narrative surrounding Bitcoin’s market power and institutional adoption.
Stacks Rises with Strength from Bitcoin
Stacks aims to facilitate the implementation of smart contracts and decentralized finance (DeFi) applications on the Bitcoin Blockchain. This feature further increases its appeal amid growing global interest in Bitcoin as an asset. Merten highlighted Stacks’ unique position as being natively built on Bitcoin, noting that it could benefit from the positive momentum caused by major cryptocurrency initiatives, such as the approval of spot Bitcoin exchange-traded funds (ETFs).
Upon examining technical charts, Merten pointed out that Stacks is forming a bullish pattern against Bitcoin (STX/BTC). He specifically noted the potential for a significant breakout if STX/BTC manages to close above a key resistance level. This bullish trend is supported by the observed price movement, which shows strong upward momentum and positive signs of supply-demand imbalance for STX/BTC.
Merten Expects STX to Rise to 17 Dollars
As of the writing of this article, the STX/BTC trading pair is valued at 0.00004827 BTC (2.50 dollars), representing a significant increase of approximately 330% compared to the level on November 23, 2023. Merten sees this impressive performance as evidence of STX’s strength and, in particular, its potential for even greater growth compared to past price movements.
Merten also mentioned that STX’s recent price movements have formed a historical price pattern indicating a potential rally towards 17 dollars. This pattern suggests a strong growth away from a support band and the possibility of an upward trajectory towards the upper channel.
