- Stacks price is stuck in consolidation since December 26, hinting at a volatile breakout.
- STX has already breached the upper trend line, indicating a bullish rally.
- Investors can expect the altcoin to tag $1.9, $2.12, $2.25 and $2.46 hurdles.
- Since Stacks is a Bitcoin Layer 2 solution, the ETF approval news could influence it.
Stacks (STX) price shows strength despite the market slump in the New York trading session on Sunday. One of the reasons could be that Bitcoin-related altcoins like Bitcoin Cash, Bitcoin SV and others are going to see demand due to the upcoming ETF approval.
Likewise, investors looking to trade the ETF approval news might short altcoins, including Ethereum, to hedge their bullish BTC trades, which could cause a short-term dip in other cryptocurrencies.
Also read: Bitcoin Spot ETF could see SEC greenlight, Grayscale Investments files amended S-3 sets 1.5% fee
Stacks price breaks out
Stacks price has been on an uptrend since December 12, 2023. The altcoin doubled in under two weeks and set up a local top at $1.74. Since then, STX has slipped into a consolidation with roughly equal highs and higher lows.
Despite the sell-off, Stacks price has managed to undo the losses and trigger a breakout from the horizontal resistance level of $1.74. If this trend and strength continue, STX could reach the following targets - $1.90, $2.12, $2.25 and $2.46.
These take-profit levels are key Fibonacci extensions of three swing points created between January 5 and 7.
The 161.8% Fibonacci extension level is 18% away from where Stacks price currently stands – $1.84. The last target would constitute nearly 33% gain.
Also read: Week Ahead: Bitcoin ETF countdown begins
STX/USDT 4-hour chart
While the bullish outlook for Stacks price makes logical sense, it is highly reliant on Bitcoin ETF news. If the ETF approval gets delayed, then investors are likely going to offload their holdings trigger a sell-off.
In such a case, if Stacks price produces a four-hour candlestick close below $1.56, it will create a lower low and invalidate the bullish thesis. Such a development could see STX crash 12% to the next key support level at $1.37.
Also read: Solana meme coin SILLY price eyes nearly 40% gain after key bullish developments
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