Expert Says Stacks (STX) is ‘Undervalued,’ Predicts STX Price Rally to This Target

Stacks (STX) may be setting up for a price move, as the Bitcoin ecosystem player draws interest for its AI integration capabilities.

Cryptocurrency Stacks (STX) might be gearing up for a price move as the Bitcoin (BTC) ecosystem player attracts attention for its AI integration capabilities.

According to crypto analyst Michaël van de Poppe, a breakout above a key level could spark a rally toward a significant target. Here's a closer look at the technical levels and what traders can expect in the coming months.

Stacks (STX) price seen setting up for a breakout. Source: Michaël van de PoppeSTX price support and resistance levels

Van de Poppe's chart shows Stacks consolidating within a higher timeframe support zone, ranging from $1.27 to $1.29. This area has historically served as a strong demand zone where buyers tend to step in.

The first major resistance lies at $2.06, which STX must break to confirm a bullish trend. If the token rebounds to $1.40 and maintains support above this level, it could spark an upward trend. Van de Poppe's upcoming price target is around $2.50 to $3.00, based on his technical analysis.

Stacks trend at a critical juncture

The Stacks trend is transitioning from a consolidation phase into a potential reversal. After a strong rally in early 2024, STX entered a cooling-off period, forming a higher timeframe accumulation zone.

If bulls reclaim $1.40 and establish it as support, it might validate a bullish trend reversal. The subsequent confirmation signal would involve a breakthrough above $2.06, potentially paving the way for an increase toward $2.50 and higher.

Stacks technical indicators signal growing momentum

Relative Strength Index (RSI) on the daily chart suggests that Stacks is not yet in overbought territory. Declining volume during pullbacks indicates weakening selling pressure, which could signal a potential trend shift.

A breakout above $1.40 with strong volume would validate bullish momentum and pave the way for additional gains. In a bullish scenario, maintaining support at $1.25-$1.30 and regaining $1.40 could propel STX to $2.06, targeting $2.50-$3.50.

A bearish scenario unfolds if $1.25 support fails, potentially pushing STX down to $1.00-$1.10, extending its accumulation phase.

Stacks is currently at a pivotal moment, with $1.40 as the key level to watch. Should buyers overcome this resistance, the journey toward $2.50 and greater targets may appear more feasible.

As interest in the Bitcoin Layer 2 ecosystem and AI-driven developments continues to rise, analysts like Michaël van de Poppe remain optimistic about STX's future trajectory.

Follow us on X (Twitter), CoinMarketCap, and Binance Square for more daily crypto updates. Get all our future calls by joining our FREE Telegram group.

We recommend eToro