Stacks Price Jumps 10% As SEC Drops Investigation – STX Nears $2 With More Upside Potential
STX price jumps 10% as SEC drops its investigation into its ICO sale. STX trades at descending resistance eyeing a breakout.
Key Takeaways
- SEC concludes investigation into Stacks network.
- STX token price rose 10%, now near $2.
- Compliance efforts highlight crypto regulatory challenges.
The US Securities and Exchange Commission (SEC) has concluded its investigation into Stacks, a prominent Bitcoin layer-2 network. Hiro Systems, the developers behind Stacks, announced on July 12 that the SEC had informed them of this decision on July 9.
Since July 8, STX has surged 50% in value. Could there be more gains on the horizon for the Bitcoin Layer-2?
Stacks was Compliant From the Start
Hiro Systems raised $70 million from token sales between 2017 and 2019. In 2019, it had its first-ever SEC-qualified offering and became decentralized before its main net launch in January 2021. Muneeb Ali, a board member of Hiro Systems, expressed optimism about this outcome but emphasized the need for better regulatory systems to support innovative open protocols.
The crypto community has hailed the SEC’s decision not to recommend any enforcement action against Stacks as a victory. However, the notice clarified that this decision does not guarantee that future actions will not arise from the investigation.
Despite compliance efforts, Stacks faced scrutiny, highlighting the ongoing regulatory challenges in the crypto space.
STX Price Analysis
After peaking at nearly $4 on April 1, the price of Stacks (STX) has been locked in a persistent downturn. It slipped below $1.20 on July 5 and remains within the bounds of the descending triangle.
On July 8, the daily chart MACD, converging its moving averages, hinted at a potential uptrend. The RSI had dropped to 30%, indicating an oversold condition. A reversal could start as the price bounces from its descending support. As it now tests its descending resistance, confirmation will require an upside breakout.
Should this breakout occur, we could receive a signal that Stacks (STX) ended its ABC correction from the April all-time high of $3.89. In that case, a new five-wave impulse of the same degree could lead to a new all-time high later in 2024.
After the breakout, a second strong confirmation sign would maintain above the $1.70 horizontal level on the expected downturn. If this higher low is made, an early indication of a starting uptrend will be seen, and we anticipate higher prices.
Alternatively, if the price gets rejected at the current descending resistance level retest, STX could continue moving down, potentially dropping below $1.
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