dailyhodl.com
A widely followed crypto analyst believes that one red-hot altcoin project built on the Bitcoin (BTC) blockchain has more upside potential.
In a new strategy session, Nicholas Merten, the host of DataDash, tells his 510,000 YouTube subscribers that Stacks (STX), a project that aims to enable smart contracts and decentralized finance (DeFi) applications on Bitcoin, could benefit from the market strength of the top performing digital asset.
“The narrative now is Bitcoin-centric. It is focused on Bitcoin becoming this institutional asset, this global collateral or hedging asset. With Stacks being natively built around Bitcoin, and we can see the technical formation of the long run, we can see that this may very well have a ton of room to continue climbing here if we can continue that momentum on the ETF (exchange-traded fund) side.”
The trader also believes Stacks may be forming a bullish pattern against Bitcoin (STX/BTC).
“The BTC pairing has gotten what I’ve been looking for here, which is looking like it could be very well by the end of this week the first close above this wedge in price. I would love to see this close here. That would give me much more confirmation on… the next big move.
I know a lot of people could say, We’ve already moved up here off the lows, more than double here against Bitcoin back in November. But for me, that’s what gets me excited. The fact that we’ve made that move, the fact that we’re not seeing a contraction of price, it tells me that the supply-demand imbalance is there for price to really accelerate.”
STX/BTC is trading for 0.00004827 BTC ($2.50) at time of writing. STX is up about by 330% from its November 23rd price of $0.58.
The trader also says Stacks appears to be repeating a historical price pattern that could lead to a massive rally to $17.
“Solid expansion away here from the support band after finding good support here between June of 2023 to October 2023. I see a repetition of history here within price action that showcases and gives me the confidence that we can really have that ascension toward this upper channel. Time will tell when it’s going to happen.”
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