Stacks（STX）price prediction: STX continues to rise before the SIP-031 improvement proposal vote

Gate News, Stacks (STX) continued to rise for the third day in a row, with a 10% increase as of Wednesday's press time. The voting for the SIP-031 improvement proposal aimed at enhancing infrastructure is set to begin on Wednesday, which could drive the recovery. With the rising optimism in the community, there has been a significant increase in open derivative contracts in the Derivatives market, indicating traders' bullish expectations for the market.

Stacks announced in a recent blog post that the SIP-031 vote will begin on June 25th and is expected to take place at Bitcoin block height 902677. The vote will conclude two weeks later on July 9th. If 80 million STX or 80% of STX holders support the proposal, it will be approved.

If approved, it will create an ecosystem donation fund similar to Sui, Avalanche, or Near Protocol, increasing Stacks' annual total emissions from 3.52% to 5.75% over the next five years. The fund is intended to help raise funds needed for the ecosystem, such as rewards, liquidity, and marketing plans.

After the proposal vote, there is an increase in optimism around Stacks

Coinglass data shows that investor confidence is soaring, with Open Interest (OI) rising by 17% to $66.27 million. Typically, an increase in buying activity leads to an influx of capital, resulting in a significant increase in Open Interest contracts. Despite a slight rise in Open Interest (OI), the Open Interest Weighted Financing Rate has reached 0.0099% and remains unchanged, indicating that buying activity has remained dominant and stable throughout May. A positive financing rate indicates increased buying activity, as longs pay a premium to keep spot and futures prices consistent.

(Source: Coinglass)

STX's continuous pump is aimed at reaching monthly highs

FXStreet analyst Vishal Dixit said that as of Wednesday's draft, STX rose by 10%, bringing the total rise to 30%. STX rebounded from the $0.50 support level marked on the green band on the daily chart, surpassing last week's high of $0.725. The target of the recovery rebound is the monthly high of $0.802, which is a recent resistance level. If the daily closing successfully breaks through this level, it is expected to continue the rising trend, approaching the psychological barrier of $1.00.

Moving Average Convergence/Divergence (MACD) indicator shows the crossover of MACD and the signal line. When the green histogram surges from the zero line, it gives a buy signal to the off-exchange traders.

Relative Strength Index (RSI) is 53, breaking through the midline, indicating increased buying pressure.

However, if STX fails to maintain the bullish closing of Wednesday, it may reverse to the support area of $0.50 and wipe out the weekly pump.

(Source: Trading View)